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Cathie Wood-led asset management firm Ark Invest disposed of $2.8 million in shares of its spot Bitcoin ETF, ARKB, on Monday. The firm sold the shares from its Next Generation Internet ETF (ARKW fund) at the closing price of $63.25 per unit.
This sale is part of Ark Invest’s latest move to restructure and rebalance its fund weightings. It brought the company’s sales of the BTC ETF over the past few months to $17.5 million.
Ark Invest’s latest ETF sales come as Bitcoin tested the $64,000 region again.
Ark Invest Sells Shares of Its Spot Bitcoin ETF
On Monday, September 23, Ark Invest’s Next Generation Internet ETF disposed of 44,409 shares of its ARKB spot BTC ETF holdings worth $2.82 million at a closing price of $63.25 per share.
Cathie Wood and Ark Invest’s trade activity from today 9/23 pic.twitter.com/JEvtQzDkmi
— Ark Invest Daily (@ArkkDaily) September 24, 2024
Within the past few weeks, the firm has sold up to $17.5 million in shares of its spot Bitcoin ETF, ARKB. In August and July, it sold about $6.9 million and $7.8 million ARKB shares, respectively.
The sales are part of ARK Invest’s restructuring and rebalancing investment strategy for its funds. The investment company operates with the policy that no individual fund holding will exceed 10% of an ETF portfolio.
This strategy helps the company diversify its funds in different areas. In this case, the Cathie Wood-led firm aims to stabilize its ARKW’s asset weightings compared to other holdings.
As of September 24, ARKB accounts for a net assets weighting of 9.93% in Ark Invest’s ARKW fund. This makes it the second-largest holding in the ARKW fund, with assets worth $139.7 million.
Moreover, the ETF’s weightings represent approximately 5% of the spot Bitcoin ETF’s overall AUM of $2.9 million. ARKW’s largest holding is Tesla stock, worth about $142.9 million, comprising 10.15% of the fund’s total value.
ARK Invest Accumulates PayPal and Pinterest Shares to Diversify Its Investment Fund Holdings
Recently, Ark Invest purchased PayPal and Pinterest shares to maintain the diversification strategy of its holdings. It bought the shares on Monday, September 23, as it offloaded its spot Bitcoin ETF shares.
Ark Invest’s Fintech Innovation ETF (ARKF) accumulated 57,824 shares of PayPal, worth almost $4.5 million. The firm completed the purchase at a closing price of $77.67 per unit of the shares.
Similarly, Ark Invest’s Next Generation Internet ETF (ARKW) brought 115,211 Pinterest shares worth $3.51 million at a closing price of $30.46 per share.
Meanwhile, Ark Invest’s portfolio rebalancing came amid a moderate recovery within the crypto market. On Monday, Bitcoin retested the $64,000 threshold, hitting a daily high of $64,733, according to data from CoinMarketCap.
However, the asset has pulled back, shedding some of its gains, leading to $124 million in liquidations over the past 24 hours. BTC’s price hovers around $63,594. It also reflects a 0.13% surge over the past day, with a market cap of $1.25 trillion.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
