Cathie Wood’s ARK Invest is taking a mixed approach to new U.S. trade tariffs. The firm has sold $12 million worth of its ARK 21Shares Bitcoin ETF while investing $26.6 million in Coinbase stock. This includes significant purchases of $13.2 million and $13.3 million just days apart following the tariff announcement on April 2. Despite the challenges, ARK’s Next Generation Internet ETF continues to provide indirect exposure to Bitcoin, holding $142 million in its Bitcoin ETF. The Market, however, has faced significant pressure, with Bitcoin ETFs experiencing a loss of $273 million in just three days. Despite this, ARK remains one of the few firms with positive inflows for the year, totaling $146 million.
Cathie Wood’s ARK Invest Adjusts Bitcoin Holdings Amid Trade Tariff Turmoil
ARK Invest, led by the renowned investment manager Cathie Wood, has made significant moves in the cryptocurrency Market in response to the latest trade tariffs announced by the U.S. government. This adjustment shows a mixed strategy as ARK has sold off some of its Bitcoin ETF shares while simultaneously increasing its position in Coinbase, a major cryptocurrency exchange.
Recent trading data reveals that ARK Invest bought $26.6 million worth of Coinbase (COIN) stock after President Donald Trump announced the new trade tariffs on April 2. This includes a substantial purchase of $13.2 million on April 7 and another $13.3 million on April 4.
Interestingly, while ARK is bullish on Coinbase, it sold $12 million of its ARK 21Shares Bitcoin ETF (ARKB) on April 7. The ARKB ETF, which was one of the first spot Bitcoin ETFs to launch in the U.S. in January 2024, experienced one of its largest sales by ARK. This follows a trend of earlier sales amounting to $8 million in early March and smaller sales totaling around $3.5 million in January.
Despite these sales, ARK’s Next Generation Internet ETF (ARKW) still provides considerable exposure to Bitcoin. As of April 8, ARKW holds $142 million in ARKB, which represents 11% of the fund’s weight. This suggests that ARK is still committed to Bitcoin investments, albeit through a different approach.
The adjustments at ARK Invest are happening during a challenging time for Bitcoin ETFs, with Market volumes suffering after the tariff announcement. Bitcoin’s price briefly dropped by 11% to around $74,700, causing substantial outflows from global Bitcoin exchange-traded products. Over just three days, Bitcoin ETFs experienced combined outflows of $273 million.
Despite this Market turbulence, ARK Invest remains one of the few Bitcoin ETF issuers with positive net flows for the year, recording $146 million in inflows as of April 4. This positions ARK favorably compared to other prominent funds like BlackRock’s iShares and ProShares, which have also seen positive inflows.
In summary, ARK Invest is navigating the current Market landscape with strategic adjustments, reflecting a nuanced perspective on cryptocurrency investments and the potential impact of trade policies.
Tags: Cathie Wood, ARK Invest, Bitcoin ETF, Coinbase, Trade Tariffs, Cryptocurrency Market, Investment Strategy
What recent investment move did Cathie Wood make regarding Coinbase?
Cathie Wood’s ARK Invest recently bought $26 million worth of shares in Coinbase, which is a major cryptocurrency exchange. This move shows her continued interest in the crypto Market.
Why did ARK unload its Bitcoin ETF?
ARK decided to sell its Bitcoin ETF to focus more on direct investments in cryptocurrencies like Bitcoin and Ethereum. This shift allows them to manage their investments differently.
How does this investment reflect Cathie Wood’s views on cryptocurrency?
Cathie Wood has a positive outlook on cryptocurrency and believes in its long-term potential. By investing in Coinbase, she signals her confidence in the future of digital currencies.
What are the risks associated with investing in Coinbase shares?
Investing in Coinbase comes with risks, like Market volatility and regulatory challenges. The cryptocurrency Market can be unpredictable, so it’s important for investors to be aware of these factors.
What should investors consider before following ARK’s investment choices?
Before following ARK’s investment moves, investors should do their own research. It’s crucial to understand the Market conditions and individual risk tolerance, as investments in crypto can be risky but also rewarding.