TL;DR
- Ark Invest purchased 38,865 Coinbase shares for $8 million and sold $8.2 million of its Bitcoin ETF (ARKB).
- Coinbase represents 6% of the ARKW fund, valued at $99.1 million, while ARKB remains the top allocation with $169.8 million.
- The crypto market briefly rose after Trump’s announcement about a cryptocurrency reserve but later corrected due to new trade tariffs.
Ark Invest has made another purchase of Coinbase shares, acquiring 38,865 shares worth $8 million. This acquisition is part of its investment strategy for the Next Generation Internet Fund (ARKW). The investment firm also made a sale of $8.2 million worth of its Bitcoin ETF (ARKB), as it continues to adjust its holdings amid ongoing volatility in the crypto market.
The ARKW fund maintains diversification as a strategic principle, aiming for no single asset to exceed 10% of the portfolio. This policy means that if the value of Coinbase shares changes significantly compared to other holdings, Ark Invest will adjust its exposure to this asset. Currently, Coinbase represents 6% of the ARKW fund, valued at approximately $99.1 million, although its shares recently experienced a 4.6% drop.
The Bitcoin ETF ARKB remains the top allocation within this fund, with a 10.3% share, worth $169.8 million. This ETF has attracted $2.8 billion in net inflows since its launch in January 2024.
Ark Invest’s Bitcoin ETF (ARKB) Survives Fund Outflows
Despite the sales, ARKB was the only Bitcoin ETF in the United States to see a positive net inflow on Monday, with $58.2 million in inflows. Other funds, such as those from BlackRock and Grayscale, saw significant capital outflows.
The crypto market experienced a brief rally after President Trump’s announcement about the creation of a U.S. cryptocurrency strategic reserve. However, the momentum was followed by a price correction after Trump announced additional tariffs on products from Canada, Mexico, and China, generating a risk-off sentiment among investors.
According to the latest data from CoinMarketCap, Bitcoin (BTC) is priced at $85,700, down 4.6% in the last 24 hours. The overall crypto market has lost 4.86% of its market capitalization. BTC is $22,000 below its all-time high (ATH) and has dragged down all altcoins.
