ARK Invest Trims Robinhood and Coinbase Stock, Boosts Stake in Roblox
Summary:
Investment management company ARK Invest is significantly reducing its Robinhood (HOOD) stock, with its largest sale since last year seeing 1.6 million shares offloaded across three of its funds. Despite this $31.5 million sale, Robinhood still remains as the eighth-largest portfolio asset in ARK's primary fund (ARKK). ARK has also continued to shed its Coinbase shares, while expanding its holdings in Roblox by acquisition of 740,115 shares for its three funds.
ARK Invest, the reputable investment management company established by Cathie Wood, has started the process of significantly shedding its holdings of cryptocurrency-friendly broker-dealer, Robinhood (HOOD). Documents sighted by Cointelegraph on March 25 indicate that ARK eliminated 1.6 million Robinhood stocks from its portfolio across three funds. The stock sold amounts to roughly $31.5 million, determined by Robinhood's closing rate of $19.08 on Monday, as recorded by TradingView. The most sizeable chunk — roughly 1,247,181 shares — equivalent to around $24 million, was jettisoned from the ARK Innovation ETF (ARKK). Additional sales from ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) totalled to 275,933 and 128,137 Robinhood shares respectively. With this recent disposal, ARK has had its biggest Robinhood sale since it started actively investing in HOOD shares in the previous year. The disposal coincides with Robinhood enjoying substantial growth, seeing a 36% price hike in the past month. ARK has been consistently reducing its shareholdings in Robinhood, mainly attributed to compliance with Rule 12d3-1 that prevents funds from purchasing securities exceeding 5% of the total asset value. Post the $24 million sale of Robinhood stocks, ARK’s ARKK still has HOOD as its eighth highest portfolio asset, standing at 4.3% of its total $8.2 billion asset base. Its most significant assets include Coinbase (COIN), Tesla (TSLA), and Roku (ROKU). At the same time, ARK has remained committed to expanding its holdings in online gaming platform Roblox (RBLX), with a purchase of 740,115 shares for its three funds on March 25, amounting to about $27 million. In parallel, ARK has carried on with the shedding of Coinbase shares, relinquishing 4,291 coins this Monday, which equates to approximately $21 million by Tuesday morning. Founded in 2013, Robinhood is an app that permits users to trade cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) along with a multitude of other assets, including stocks, ETFs, and options. On March 20, 2024, the Android version of the Robinhood Wallet app, a self-custodial wallet, was introduced by Robinhood.
Published At
3/26/2024 11:30:17 AM
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