Ark Invest, led by Cathie Wood, reduces Coinbase holdings by $15.1 million

Ark Invest, led by Cathie Wood, has reduced its holdings in Coinbase (COIN) again. The company sold 70,616 shares of Coinbase, for a total of $15.1 million, spread across three of its exchange-traded funds on May 7.

The move came despite the stock market’s positive first-quarter earnings report, which showed higher-than-expected revenue and an all-time high in institutional trading volume.

The investment firm’s decision involved selling 45,915 shares worth $9.8 million of its Innovation ETF ( ARKK ), 17,755 shares worth $3.8 million of its Internet ETF Next Generation ( ARKW ) and 6,946 worth $1.5 million from its Fintech Innovation ETF ( ARKF ), according to its recent trading filing.

Ark also participated in the $20.4 million sale of COIN less than a month ago.

This investment strategy appears to limit exposure to any single security in your ETF portfolio to no more than 10%. This approach ensures a well-diversified portfolio.

Ark Invest had previously expressed plans to continue rebalancing and selling shares if Coinbase’s weighting exceeds that threshold compared to other investments.

Meanwhile, Coinbase reported total revenue of $1.64 billion, beating the Street consensus estimate of $1.34 billion.

Despite this strong performance, Ark Invest opted to offload shares, indicating a strategic move that could be influenced by several factors beyond Coinbase’s recent financial success.

Coinbase ranks as the ARKK ETF’s third-largest holding, making up 8.2% of the portfolio, behind Tesla and Roku.

In ARKW, it is the fourth largest holding at 8.2%, after Ark Bitcoin ETF, Tesla and Roku. Within ARKF, Coinbase leads as the largest share with a weight of 10.4%.

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