ARK Invest Sells $22M in Coinbase While Increasing Other Crypto Bets
ARK Invest trimmed its Coinbase (COIN) holdings, selling roughly $22 million of COIN across its actively managed ETFs as part of routine rebalancing amid crypto-equity volatility. The firm did not exit Coinbase entirely but reduced exposure; COIN had previously been sold and briefly repurchased in earlier filings. Concurrently, ARK increased stakes in other crypto-related and innovation names — including additional shares of Bullish and larger positions in Alphabet, Recursion Pharmaceuticals and Tempus AI — reallocating capital to favoured fintech and AI names while trimming positions in Roku, The Trade Desk and PagerDuty. Bullish purchases (~$10.7M) coincided with a single-day ~10% rise for the stock; Coinbase rallied ~13% on the day despite ARK sales but remains down year-to-date. Implications for traders: expect heightened short-term volatility and liquidity impact around COIN when ARK-related flows hit the market; watch Bullish and other ARK-targeted crypto-equity names for spillover moves. Overall signal: tactical ETF rebalancing rather than a full institutional exit from exchange exposure, implying neutral-to-moderately bullish medium-term sentiment for the sector.
Neutral
Short-term: Bearish pressure on COIN is possible due to ARK’s $22M in sales — large ETF-related disposals can temporarily weigh on liquidity and price, especially for intraday flows. Historical patterns show ARK moves often increase volatility in the affected tickers. However, the immediate price reaction (COIN rallied ~13% on the day) indicates the market may absorb the sales or that other flows outweighed them. Medium-to-long-term: Neutral-to-moderately bullish. ARK’s sales appear tactical rebalancing rather than a sector exit; the firm simultaneously increased exposure to other crypto-related assets (Bullish) and innovation names, signalling continued institutional interest in the space. For traders this means expecting elevated short-term volatility around ARK-related filings and trade windows, while sector-level sentiment remains supported if ARK and similar managers keep allocating to crypto and fintech names.