Ark Invest Sells Coinbase and Robinhood as Crypto Stocks Surge

Cathie Wood's Ark Invest Sells Coinbase and Robinhood Amid Stock Surge

Cathie Wood's Ark Invest has been making headlines this week for its significant divestments in Coinbase (COIN) and Robinhood (HOOD). But why did the firm sell these stocks while their prices were hitting new highs?

COIN Sell-Off

On Friday, Ark Invest unloaded approximately $55.6 million worth of COIN stock, with its ARK Innovation ETF (ARKK) selling 151,271 shares for $38.65 million and its ARK Next Generation Internet ETF (ARKW) offloading 60,332 shares for $15.41 million. The Ark Fintech Innovation ETF (ARKF) also contributed to the sell-off, shedding 6,007 shares worth $1.53 million.

HOOD Divestment

Ark Invest also dumped $5.76 million worth of HOOD stock on Friday. ARKK sold 229,586 shares for $4.20 million, while ARKW disposed of 50,711 shares for $928,000 and ARKF unloaded 34,492 shares for $631,000.

Market Reaction

Despite the surge in COIN and HOOD stock prices leading up to the divestments, both stocks fell significantly on Friday, with COIN dropping 2.48% to $255.51 and HOOD plummeting 4.14% to $18.30.

Bearish Outlook

The massive sell-off by Ark Invest reflects Cathie Wood's bearish outlook on crypto stocks in the short term. Wood has expressed concerns about the regulatory environment and the potential for a market correction in the crypto sector.

Reddit IPO Interest

Despite the divestments in COIN and HOOD, Ark Invest has expressed interest in investing in the upcoming Reddit IPO. Wood has praised Reddit's community-driven platform and its potential for growth.

Market Implications

The divestments by Ark Invest have raised questions about the future of crypto stocks and the broader technology sector. Some analysts believe that the sell-off could signal a broader market correction, while others see it as a tactical move by Wood to rebalance her portfolio.

Conclusion

Cathie Wood's Ark Invest has made a significant bet against crypto stocks with its divestments in Coinbase and Robinhood. The firm's bearish outlook and interest in the Reddit IPO suggest that Wood believes the crypto sector may be due for a correction, while the technology sector may still offer opportunities for growth.