Ark Invest, led by Cathie Wood, trimmed its exposure to two of its top-performing crypto-related assets following record price action. On Tuesday, the firm sold 34,207 Coinbase (COIN) shares, worth $13.3 million, from its ARKW ETF. It also unloaded 225,742 shares of its own Bitcoin ETF, ARKB, valued at $8.7 million. These moves followed Coinbase hitting a record high of $394.01 and ARKB benefiting from a nine-day ETF inflow streak.
Coinbase remains ARKW’s second-largest holding at 7.9%, just behind Robinhood at 8%. The sale reflects Ark’s strategy of rebalancing assets when any position nears 10% of a portfolio. While COIN closed slightly lower Tuesday at $388.02, its market cap still hovers near $100 billion.
Profit Taking Aligned With Portfolio Rules
Ark Invest sticks to strict allocation rules to avoid overexposure. When one stock rises too much, the firm takes profits. This time, Coinbase and ARKB both surged in value. The firm rebalanced to lock in profits and reduce concentration risk.
Moreover, Ark’s Bitcoin ETF has now reached $5 billion in assets under management. Tuesday’s ARKB sale followed $6.2 million in net outflows from the fund. Still, spot Bitcoin ETFs saw $403.1 million in inflows that day, mainly from BlackRock’s IBIT.
Ethereum Interest Grows as Supply Tightens
Ark is also turning more attention toward Ethereum. Cathie Wood praised the Ethereum Foundation’s zkEVM plans for improving scalability and privacy.
Additionally, Ark researcher Lorenzo Valiente pointed out a brewing ETH supply shock. Ethereum ETFs pulled in more ETH in nine days than what was issued since the Merge.
Wood summarized the trend clearly: “The price of any good is determined at the margin, demand relative to supply. The math is mathin.”
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