Cathie Wood’s ARK Invest has taken a mixed approach following the U.S. announcement of new trade tariffs. The firm sold $12 million worth of its spot Bitcoin ETF while simultaneously purchasing $26.6 million in Coinbase stock. This buying spree included significant acquisitions on April 4 and April 7. Despite the Bitcoin ETF sale, ARK continues to maintain indirect exposure to Bitcoin through its Next Generation Internet ETF, which holds $142 million in Bitcoin-related assets. The overall Market saw a sell-off, with Bitcoin prices dropping 11% after the tariff news, and Bitcoin ETFs experiencing substantial outflows. Nevertheless, ARK remains one of the few firms with positive inflows for the year.
Cathie Wood’s ARK Invest Reacts to New US Trade Tariffs
In a recent move reflecting its mixed sentiment towards the new trade tariffs imposed by the United States, ARK Invest, led by Cathie Wood, has made some notable changes to its investment portfolio. The firm has chosen to sell a portion of its holdings in its spot Bitcoin ETF, while simultaneously increasing its investment in Coinbase.
Since the trade tariff announcement by former President Donald Trump on April 2, ARK Invest has acquired a total of $26.6 million in Coinbase stock, specifically $13.2 million on April 7 and $13.3 million on April 4. The firm’s bullish stance on Coinbase stands in contrast to its decision to divest $12 million from its ARK 21Shares Bitcoin ETF (ARKB) on April 7. This ETF was one of the first spot Bitcoin ETFs to launch in January 2024.
ARKW continues to be a major player in the Bitcoin ETF Market. Even after the recent sale, the Next Generation Internet ETF (ARKW) maintains substantial exposure to Bitcoin, with around $142 million in the ARKB ETF. This positions ARK’s Bitcoin strategy effectively, accounting for about 11% of the fund’s value as of April 8.
Bitcoin ETFs Face Market Challenges
The timing of these transactions has coincided with significant Market fluctuations. Following the announcement of the tariffs, Bitcoin’s price briefly dropped by 11% to around $74,700. Consequently, Bitcoin ETFs experienced a wave of outflows, amounting to $207 million last week alone, with an additional $109 million in outflows on April 7. This brings the total losses in Bitcoin ETFs over the last three trading days to approximately $273 million.
Despite these challenges, ARK Invest remains one of the few Bitcoin ETF issuers to record positive inflows in 2025. As of April 4, ARK has seen $146 million in inflows this year, in contrast to other firms like BlackRock’s iShares and ProShares, which have also reported significant inflows.
Overall, ARK Invest’s recent activities highlight the ongoing volatility in the cryptocurrency Market, especially as it reacts to economic factors like trade tariffs. Investors are keeping a close eye on how these shifts impact the broader landscape of Bitcoin ETFs and the cryptocurrency Market as a whole.
Tags: ARK Invest, Bitcoin ETF, Coinbase, Trade Tariffs, Cryptocurrency Market
What are ARK’s recent moves involving Coinbase and Bitcoin ETF?
Cathie Wood’s ARK Invest just bought $26 million worth of shares in Coinbase. At the same time, they sold their Bitcoin ETF. This strategy shows a shift in focus towards Coinbase while moving away from the ETF.
Why did ARK Invest sell its Bitcoin ETF?
ARK sold its Bitcoin ETF to adjust its investment portfolio. The decision might be based on current Market conditions or a belief that there are better opportunities elsewhere.
What does the investment in Coinbase mean for ARK’s strategy?
By investing heavily in Coinbase, ARK is signaling confidence in the company’s future growth. They see potential in Coinbase as a primary player in the crypto Market, suggesting they believe in the long-term value of cryptocurrency trading platforms.
How does this impact the cryptocurrency Market?
ARK’s investment in Coinbase could positively affect the Market by boosting investor confidence. It shows that a well-known investment firm believes in the potential of crypto exchanges, which may attract more investment in the industry.
Is this move typical for Cathie Wood and ARK Invest?
Yes, Cathie Wood and ARK Invest often make bold investment moves. They focus on innovation and disruptive technologies, so shifting investments like this is in line with their strategy to stay ahead of Market trends.