Ark Invest Buys $8.7M in Coinbase Shares, Sells $8.6M of Its Bitcoin ETF Amid Crypto Sell-Off

Ark Invest purchased 41,032 shares of Coinbase (COIN) worth approximately $8.7 million for its Next Generation Internet ETF (ARKW) on Tuesday, while simultaneously selling $8.6 million of its own spot Bitcoin ETF (ARKB) amid a broad cryptocurrency market downturn.

This marks Ark’s first acquisition of Coinbase shares since October 8, 2024, when it bought $2.2 million worth of COIN ahead of former President Donald Trump’s pro-crypto election victory.

Following that purchase, Coinbase stock doubled, reaching an all-time high of $343.62 in December, while Bitcoin surged 76% from around $62,000 to over $109,000 by Inauguration Day.

Coinbase Drops 38% and Bitcoin Falls 19% Amid Latest Crypto Market Sell-Off

Both Coinbase shares and Bitcoin have faced sharp declines.

Coinbase shares have dropped approximately 38% from their peak, while Bitcoin has fallen 19%, worsened by the latest sell-off in the crypto market.

On Tuesday, Coinbase closed down 6.4% at $212.49, leaving it down 17% year-to-date.

However, COIN showed signs of recovery with a 2% gain in pre-market trading on Wednesday, according to TradingView data.

Ark’s investment strategy mandates that no single holding exceed 10% of any fund’s portfolio, ensuring diversification.

If Coinbase stock continues to fluctuate, Ark may further rebalance its holdings.

As of February 25, COIN represented 5.5% of the ARKW fund, valued at roughly $94.4 million. Coinbase’s market capitalization currently stands at $39.5 billion.

ARK Invest buys the dip!

Cathie Wood’s ARK snapped up 41,032 $COIN shares ($8.7M) as crypto equities tumbled.

Meanwhile, it sold 98,060 shares of its own Bitcoin ETF (ARKB), worth $8.6M.

This comes after $940M in record outflows from U.S. spot Bitcoin ETFs. pic.twitter.com/gQYBTC0Vjp

— Satoshi Club (@esatoshiclub) February 26, 2025

While increasing exposure to Coinbase, Ark offloaded 98,060 shares of its ARKB ETF from the same fund—its first significant ARKB sale since September 2023, when it sold 44,609 shares worth $2.8 million.

Despite the recent sale, ARKB remains ARKW’s largest holding with a 10.7% weighting, valued at approximately $182.2 million.

Other top positions in the fund include Tesla, Roku, Roblox, and Robinhood.

Since launching in January 2024, Ark’s spot Bitcoin ETF has attracted $2.7 billion in net inflows, bringing its assets under management (AUM) to $4.7 billion.

Bitcoin Drops 10% in Two Days as U.S. Spot ETFs See $1B in Record Outflows

The asset reallocation comes amid significant market volatility.

Bitcoin plummeted 10% over the past two days before stabilizing slightly. U.S. spot Bitcoin ETFs witnessed heavy outflows, with $539 million exiting on Monday and a record $1 billion on Tuesday.

Altcoins fared worse: Ether (ETH) dropped 18%, XRP fell 19%, and Solana (SOL) lost 22% before finding some support.

These declines have been attributed to uncertainty over President Trump’s tariff policies, the aftermath of Bybit’s $1.5 billion hack, and the recent unwind of the memecoin surge.