Cathie Wood, through ARK Invest’s August 1, 2024 purchase of 3iQ Ether Staking (ETHQ.U) for $21 millions was accompanied by the sale of Coinbase worth $14.6 Million (Nasdaq COIN).
The transactions represent a realignment of ARK’s investments in crypto.
ARK has made its first investment into this Canadian fund with the purchase of 1.7 millions shares worth $21million. This ETF, which is designed to provide long-term capital growth through Ether investment and passive rewards by staking has been gaining traction over the past few months.
The fund’s value has risen by approximately 40% in the past year since its launch in 2021 as 3iQ Ether ETF, followed in 2023 by its expansion to include stake in the future.
Ark invested in 3iQ’s Ether Satking ETF primarily through its Next Generation Internet ETF, which purchased around 1 million shares. The remaining shares were acquired via the ARK Fintech Innovation ETF.
The move shows ARK’s increasing interest in expanding its portfolio to include Ethereum-based assets.
Ark sells $14.7 Million Coinbase Shares
ARK bought 69,069 Coinbase shares on August 1 valued at $14.75 million based upon the closing price.
Coinbase reported a $1.4 billion revenue in the second quarter 2024. This sale highlighted the company’s efforts to improve regulatory clarity around the world. This was ARK’s biggest disposal of Coinbase (Nasdaq : COIN) shares since April.
Coinbase, which represents nearly 10% of the ARK Fintech Innovation ETF’s holdings, remains a significant component.
Ark has also sold Robinhood and ARK 21Shares Bitcoin ETF shares
Ark Invest sold 108 751 shares of the ARK 21Shares Bitcoin Exchange Traded Fund (ARKB), totaling approximately $6.9 Million, and 282,435 Robinhood Shares, amounting to $5.7 Million, on the same date (August 1).
These moves are a reflection of ARK Invest’s dynamic investment approach, a repositioning to Ethereum as well as a reevaluation on their stake in popular crypto- and financial platforms.
Ark made its investment in 3iQ Ether ETF on the same day as Ether ETFs posted a net inflow totaling $26.7 million. According to Faride Investors, inflows in BlackRock’s Ether ETF outpaced outflows in Grayscale’s Ethereum Trust.
It also comes as the crypto markets are experiencing a major drop. According to Coinmarketcap, Ethereum (ETH), has tested a low daily of $2988.65, and Bitcoin, a low daily of $62,248.94.
The post ARK Invest invests $21 Million in 3iQ ETF following major Coinbase stock sales may change as new information becomes available.
