Ark Invest, led by Cathie Wood, sold 77,561 shares of Coinbase, worth $20.4 million, from its ARKK and ARKW ETFs on Thursday. This move aligns with Ark’s strategy to maintain diversification by capping individual holdings at 10% of an ETF’s portfolio.
With Coinbase as the second-largest holding in both ARKK and ARKW, Ark may adjust its holdings if Coinbase continues to outperform.
Coinbase’s market value in ARKK is $696 million and $169 million in ARKW. Despite the recent sale, both ETFs have performed well over the past year, with ARKK up 24% and ARKW up 55%.
Coinbase’s stock closed at $263.01 on Thursday, up nearly 5% for the day and 52% year-to-date, nearing its previous high of $342.98 from November 2021. This values Coinbase at $48.9 billion.
Separately, Ark Venture Fund made its first investment in OpenAI on April 10, highlighting OpenAI’s AI advancements and the success of ChatGPT. The fund aims to invest across companies’ lifecycles and has generated a 21% return since 2022.
Previously, Ark Venture Fund invested in Anthropic, an OpenAI competitor, which is now seeking buyers for shares held by defunct crypto exchange FTX.
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