Cathie Wood’s ARK Invest has once again become active in trading crypto-related stocks and exchange-traded funds (ETFs) after selling $14.7 million of Coinbase shares and investing $21 million in the 3iQ Ether Staking ETF. The firm recently resumed substantial sales of Coinbase stock, unloading 69,069 shares worth $14.7 million on August 1. Despite these sales, ARK’s funds still hold a significant amount of Coinbase shares, with the exchange being the top asset in the ARK Fintech Innovation ETF. This move came as Coinbase reported $1.4 billion in total revenue for the second quarter of 2024.
Following the sale of Coinbase shares, ARK made its first purchase of the 3iQ Ether Staking ETF, acquiring 1.7 million shares worth approximately $21 million. The 3iQ Ether Staking ETF aims to generate passive rewards through staking Ether and has seen significant growth in recent months. ARK allocated around one million shares to the ARK Next Generation Internet ETF and the remaining shares to the ARK Fintech Innovation ETF. The ETF has surged around 40% year-to-date, making it an attractive investment for ARK.
In addition to selling Coinbase shares, ARK has also divested shares from its Robinhood holding and its spot Bitcoin ETF. The firm sold 108,751 ARKB shares from its ARK Fintech Innovation ETF, totaling approximately $6.9 million. This move coincides with a slowdown in inflows into Bitcoin ETFs following their launch, leading ARK to potentially capitalize on the growth expected from Ethereum ETFs. Despite initial disappointing reception, Ethereum ETFs are still in their early stages and could gather momentum in the future.
Jag Kooner, head of derivatives at Bitfinex, believes that Ethereum ETFs could attract inflows around a third of the size of Bitcoin ETFs in the long term, aligning with the relative market caps and trading volumes of the two cryptocurrencies. He notes that despite higher volatility in the market since the launch of Ethereum ETFs, the price response to Ethereum has been muted, similar to the sell-the-news event following the launch of Bitcoin ETFs in January. The market is closely watching the performance of Ethereum ETFs as they continue to attract investor interest.
Overall, ARK Invest’s renewed focus on crypto-related trades highlights the firm’s continued interest in the digital asset space. With substantial sales of Coinbase shares and investments in the 3iQ Ether Staking ETF, ARK is positioning itself to capitalize on the growth potential of various cryptocurrencies, including Ether. As the market continues to evolve and new investment opportunities arise, ARK’s strategic moves in the crypto space reflect its commitment to staying at the forefront of emerging trends and technologies.
