ARK Invest Heavily Purchases Robinhood Stocks Amid Plans for Crypto-focused ETFs
Summary:
Investment firm ARK Invest recently purchased a large number of Robinhood (HOOD) stocks, increasing their total share count by 1.1 million. The move involved three of ARK's innovation-based exchange-traded funds and comes amidst Robinhood's plans for European expansion. Despite ARK's substantial investment in Robinhood, they continue to gradually sell off their holdings in the Grayscale Bitcoin Trust. The firm has also announced plans to introduce new ETFs focusing on Bitcoin and Ether futures contracts.
ARK Invest, a company established by leading Bitcoin promoter Cathie Wood, has been methodically acquiring Robinhood (HOOD) stock, a cryptocurrency-friendly application. As per a trading update observed by Cointelegraph, ARK purchased 1.1 million Robinhood shares in a single day, amounting to roughly $9.5 million, on November 8. This transaction involved three of ARK's innovation exchange-traded funds (ETFs): ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF).
ARKK obtained the majority of these shares with an acquisition of 888,500 HOOD shares, representing about 78% of the enormous daily purchase. The ARKW and ARKF funds also took part, snatching up 152,849 and 99,697 shares, respectively. Despite ARK's consistent adding to its Robinhood equity, the scale of this recent acquisition far surpasses previous ones. For instance, on October 23, ARK invested in 197,285 Robinhood shares for its ARKW fund, a decrease from the 259,628 HOOD shares bought the day before.
This large-scale acquisition coincided with Robinhood's November 8 announcement outlining its expansion plans into Europe in the ensuing weeks, with a particular focus on setting up brokerage services in the UK. This same day, the HOOD stock experienced a decline of more than 14% following Robinhood's reporting of unfavorable results due to a decrease in trading activity and users. On November 8, Robinhood's closing stock price was $8.37, as per TradingView data.
While ARK has been actively investing in Robinhood, it has also been offloading shares of the Grayscale Bitcoin Trust (GBTC). ARKW sold an additional 48,477 GBTC shares valued at around $1.4 million on November 8. Another sizeable selling of GBTC took place on November 6, with ARKW releasing 139,506 shares for nearly $4 million.
After not selling any GBTC stock for a whole year, ARK began divesting GBTC shares towards the end of October 2022. From October 24 onward, ARK has sold an aggregate of 427,573 GBTC shares, equivalent to nearly $11.9 million at present. The total GBTC sales by ARK in November 2022 are fast approaching the size of this total.
Alongside this, ARK has also declared the creation of new ETFs concentrating on Bitcoin and Ether futures contracts. These funds are being developed in partnership with 21Shares, a prominent partner in ARK's crypto ETF portfolio. According to the firms' joint forecasts, five new crypto offerings will start trading on the Chicago Board Options Exchange by November 16 at the latest.
Published At
11/9/2023 11:30:50 AM
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