Ark Invest Rebalances Portfolio: Sells ARKB Spot Bitcoin ETF Shares
Ark Invest, led by Cathie Wood, has sold 118,209 shares of its ARKB spot Bitcoin ETF, worth $7.76 million, from its Next Generation Internet ETF (ARKW) on Wednesday. This marks the first sale of ARKB shares since the fund’s launch in January.
Ark Invest’s Diversification Strategy
Ark Invest’s investment approach mandates that no single holding constitutes more than 10% of an ETF’s portfolio. This strategy ensures diversification within its funds and suggests that the firm will likely continue to rebalance if ARKB’s proportion increases relative to other holdings in ARKW.
Current Position of ARKB
As of July 24, ARKB is the largest holding within ARKW, with a weighting of 10.98%. It surpasses other significant holdings such as Tesla (9.5%), Roku (8.48%), and Coinbase (8.23%). The ARKB ETF, valued at $162.5 million, has appreciated approximately 31% since its inception. ARKW’s overall fund has gained 33% over the past year.
Market Performance and Recent Trades
On Wednesday, ARKB closed at $65.62, a slight increase of 0.17% for the day, while Bitcoin itself fell nearly 1% to $64,491. The day before, Ark Invest sold a substantial $4.3 million worth of Coinbase shares from the ARKW fund, marking its first sale since May. In a notable move, the firm also acquired $3.5 million worth of CrowdStrike shares on the same day, in response to a global IT outage linked to the cybersecurity firm.
FAQs
Why did Ark Invest sell ARKB shares?
Ark Invest sold ARKB shares to maintain its diversification strategy, which limits any single holding to less than 10% of an ETF’s portfolio.
What is ARKB’s current position within ARKW?
As of July 24, ARKB is the largest holding in ARKW with a weighting of 10.98%.
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