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Ark Invest, led by Cathie Wood, recently offloaded 44,609 shares of its spot Bitcoin Exchange Traded (ETF) ARKB from its Next Generation Internet ETF (ARKW).
The offloaded shares are valued at $2.8 million. This move marks the latest sales, following a $6.9 million offload, $2.7 million out of its Coinbase Shares on August 1. In addition to this, the investment firm carried out a $7.8 million sale in July. Ark Invest has sold $17.5 million worth of its Bitcoin ETF shares in 2024.
Ark Invest Trims Bitcoin ETF Holdings to Maintain Diversification
The Cathie Wood firm revealed that this sale is part of a broader strategy to rebalance the firm’s fund weightings amid market fluctuations. The firm’s rebalancing strategy is driven by its policy to ensure that no asset in its ETF portfolios exceeds a 10% weighting.
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The investment firm is geared toward maintaining diversification across its holdings. If ARKB or any other asset increases, Ark Invest will periodically sell shares to avoid concentration risk.
Despite these sales, ARKB remains Ark Invest’s second-largest holding within its ARKW fund, with a 9.93% allocation. As of today, the allocation is equivalent to $139.7 million. Meanwhile, Tesla holds the largest holding in ARKW, making up to 10.15%, valued at $142.9 million of the fund.
Ark Invest Keeps Bullish Stance on Bitcoin Amidst Risk Management
This strategic approach reflects Ark Invest’s focus on managing risk while maintaining strong exposure to Bitcoin’s potential. As of Monday, ARKB was trading at $63.25, showing a 0.8% rise for the day and an impressive 26.5% increase year-to-date. In comparison, Bitcoin’s performance was more stable, trading at $63,556.46, up by 0.7% in the past 24 hours, as per CoinMarketCap data.
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Ark Invest’s Bitcoin ETF, ARK 21Shares, holds $2.9 billion in total assets under management, with the ARKB shares representing nearly 5% of that total. Cathie Wood’s bullishness and continued involvement in Bitcoin highlight her belief in the cryptocurrency’s long-term value. This is in spite of the company regularly adjusting its holdings to align with its broader investment strategy.
Bitcoin ETFs Thrive as Ethereum Funds Face Significant Outflows
This sale comes when spot Bitcoin ETFs are gaining attention, especially in the United States, where regulatory approval is still pending.
The U.S. spot Bitcoin ETFs are experiencing a notable resurgence, with a combined net inflow of $4.5 million reported on Monday. On September 14, it was reported that the digital investment product broke another major outflow streak with a $263 inflow.
In contrast, U.S. spot Ethereum ETFs remained an outlier, recording its largest net daily outflows since late July. On Monday, these funds saw an outflow of $79.3 million.
