- Cathie Wood’s Ark Invest sold over $12 million in Coinbase and Robinhood shares despite a strong crypto market rally, raising questions about the firm’s cautious outlook.
- While both stocks surged alongside Bitcoin’s all-time high, Ark’s selloff suggests concerns over regulatory risks and potential market volatility.
Cathie Wood’s Ark Invest made waves Thursday by selling off $6.5 million worth of Coinbase shares and $5.8 million of Robinhood stock. This is just as both companies surged on the back of Bitcoin’s historic rally past $118,000.
The timing of these moves has sparked speculation across financial and crypto circles: is Ark locking in profits, or do they see storm clouds ahead?
According to Ark Innovation ETF (ARKK) filings, the fund offloaded 16,627 shares of Coinbase and 58,504 shares of Robinhood. Ark also reduced its position in Block Inc. by $1.7 million, despite Coinbase and Robinhood gaining 4% and 4.4% respectively on the day.
These cuts come as Bitcoin rose 6.4% in 24 hours to reach a record high of $118,080, with Ethereum also climbing 8.5% to cross $3,000.
Coinbase recently announced a partnership with AI-powered search engine Perplexity AI to launch a real-time crypto data platform, signaling further integration of blockchain and artificial intelligence. Meanwhile, Robinhood is courting European regulators over plans to tokenize traditional stocks, aiming to roll out blockchain-based stock tokens across Europe.
However, Robinhood’s expansion isn’t without risk. The company is under investigation by the Florida attorney general for allegedly misleading crypto consumers by marketing itself as the “least expensive” option for digital asset purchases.
This regulatory heat in the U.S. could explain Ark’s decision to trim its exposure.
Ark Invest has also been offloading its holdings in stablecoin issuer Circle (CRCL) just days after its IPO, selling over $44 million in Circle stock between June 16 and 17. Notably, Ark remains the only major Circle investor to significantly reduce its stake so far, even as BlackRock eyes a potential 10% position in the company.
Circle’s executives, including CEO Jeremy Allaire, have also sold portions of their personal holdings, raising further questions about internal sentiment.
The backdrop to Ark’s moves is a broader surge in institutional interest in crypto. Bitcoin spot ETFs saw $1.18 billion in daily inflows on July 10, the second-largest on record, driving cumulative inflows above $51 billion. Ethereum spot ETFs also posted their second-best day ever, pulling in $383 million. These figures underscore what analysts are calling a pivotal moment for crypto’s integration into traditional finance.
So, why is Ark Invest pulling back while the market heats up? Some see it as a prudent profit-taking move following massive gains. Others wonder if Wood anticipates near-term volatility or regulatory pushback that could shake sentiment. Either way, her selloff amid a bull rally is raising eyebrows, and questions.
