In the world of cryptocurrency trading, ARK Invest, founded by Cathie Wood, has recently made significant moves. The firm resumed active trading of crypto-related stocks, particularly Coinbase shares, in August. Additionally, ARK made its first purchase of the Ether staking ETF 3iQ, indicating a shift in focus towards ethereum-related investments.
crypto Trades Resurface at ARK Invest
Cathie Wood's ARK Invest has once again delved into cryptocurrency trades, showcasing a renewed interest in this sector. The firm engaged in trading millions of dollars worth of crypto-related stocks and exchange-traded funds (ETFs) in a single day, signaling a strong comeback.
After a noticeable halt in trading Coinbase stock earlier, ARK resumed its sales activities in August by disposing of 69,069 Coinbase shares on August 1. This substantial transaction, valued at $14.7 million, marked the firm's largest Coinbase sale since early this year.
Despite the significant sale, ARK's funds still possess substantial Coinbase shares, with the crypto exchange remaining a top asset in the ARK Fintech Innovation ETF (ARKF), accounting for nearly 10% of the fund's portfolio.
ARK Makes First Buy of 3iQ Ether staking ETF
Following the sale of Coinbase shares, ARK made a strategic move by purchasing the Canada-based 3iQ Ether staking ETF for the first time. This ETF, launched in 2021 and expanded to include staking in 2023, aims to achieve long-term capital appreciation through investments in Ether and passive rewards from staking.
The trading data from ARK revealed a purchase of 1.7 million ETHQ.U shares on August 1, amounting to approximately $21 million based on TradingView data. The 3iQ Ether staking ETF has witnessed significant growth this year, surging by about 40%.
Notably, one million ETHQ.U shares were allocated to the ARK Next Generation Internet ETF (ARKW), while the remaining 651,713 shares were acquired through the ARK Fintech Innovation ETF.
ARK Moves Away From bitcoin ETFs
In addition to the notable changes in ARK's investment portfolio, the firm has also shifted its focus away from bitcoin ETFs. The recent sales of Robinhood shares and its own spot bitcoin ETF indicate a strategic realignment in ARK's investment strategy.
By offloading 108,751 ARKB shares from the ARKW fund, ARK made a move worth around $6.9 million based on TradingView data. The decision aligns with the current industry trend, where ethereum ETFs are gaining more traction compared to their bitcoin counterparts.
Industry experts like Jag Kooner, head of derivatives at Bitfinex, anticipate that ethereum ETFs will attract substantial inflows, leveraging the growth potential of this emerging market. Kooner also highlighted the higher volatility observed in the market since the launch of ethereum ETFs, pointing towards a significant market shift.
As the cryptocurrency market continues to evolve, firms like ARK Invest are adapting their investment strategies to capitalize on emerging opportunities. The recent moves by ARK signal a strategic pivot towards ethereum-related investments, reflecting the evolving landscape of the digital asset industry.
