Ark Invest Increases Coinbase and Robinhood Exposure Amid Broader Risk-Off Sentiment

Ark Invest, an investment management firm led by CEO Cathie Wood, purchased Coinbase (COIN) and Robinhood (HOOD) shares across its three exchange-traded funds (ETFs) on March 3.

The acquisition comes amid a broader market downturn that has pressured the crypto market as well as crypto-related equities.

Why it matters:

• Google Finance data showed that COIN was down 1.55% at market close. Furthermore, HOOD dropped over 3.4%.
• Ark’s buy-the-dip move signals continued conviction in crypto-adjacent equities despite ongoing market pressure.
• Portfolio rebalancing across multiple ETFs simultaneously amplifies exposure to and risk from crypto-sector volatility.

The details:

• Ark Invest bought 22,452 Coinbase shares across the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF).
• The purchase could be worth roughly $4.09 million based on Tuesday’s closing price of $182.36.
• The firm also acquired 158,587 HOOD shares through the same three ETFs. 
• The total value was approximately $12.06 million, based on the stock’s closing price of $76.07.
• COIN holds a 4.30% weighting in ARKK, the 7th-largest position, valued at about $277.9 million as of the latest data.
• HOOD ranks 8th in ARKK with a 4.18% weighting, perArk’s fund disclosures.
• Ark also added shares of Alibaba, Tesla, Roblox, Shopify, Amazon, and DraftKings in the same rebalancing round.

The big picture: