Ark Invest bought 54,776 Coinbase (COIN) shares, worth approximately $8 million, across three of its exchange-traded funds on Monday, adding to its holdings after the crypto exchange's shares slumped following last week's earnings report.
Of the total acquisition, the Cathie Wood-led investment firm bought 38,761 Coinbase shares ($5.7 million) for its Ark Innovation ETF (ARKK), 11,133 shares ($1.6 million) for its Ark Next Generation Internet ETF (ARKW), and 4,882 shares ($715,000) for its Ark Fintech Innovation ETF (ARKF) as the company continues to rebalance its fund weightings amid market volatility.
Ark's investment strategy aims to let no individual holding take up more than 10% of a fund's portfolio. This is to maintain diversification within its funds — meaning Ark is likely to continue rebalancing its weightings if the value of Coinbase shares rises or falls significantly relative to Ark's other holdings in its funds.
According to the firm’s disclosures, COIN is currently the sixth-largest holding within its ARKK fund, with a weighting of 4.2%, worth around $238 million, as of Aug. 4, behind Tesla, SpaceX, Tempus AI, CRISPR Therapeutics, and Shopify. COIN represents the eleventh-largest holding in its ARKW fund and the fifth-largest in its ARKF fund, worth $56.8 million and $38.5 million, respectively.
