ARK Investment Management LLC, led by Cathie Wood, has made a notable shift in its investment strategy.

The firm recently stopped selling Bitcoin and ramped up its Coinbase (COIN) stock purchases.

Cathie Wood’s Ark Investment Management LLC has stopped selling Bitcoin and ramped up its purchases of Coinbase (NASDAQ:COIN) stock, a move that might signal a shift in the firm’s investment strategy.

According to Arkham Intelligence on X, earlier this week, the Florida asset management firm acquired 64,358 shares of Coinbase, valued at approximately $11.53 million. This purchase marks the largest COIN acquisition by Ark Invest since August 2024.

The new contribution to the Coinbase portfolio comes as the firm is also holding on to its spot Bitcoin ETF despite earlier reports of the firm selling its BTC holdings to rebalance its portfolio.

This decision has sparked discussion among analysts and investors, who are trying to understand why Ark Invest decided to buy the dip in Coinbase despite selling $9 million in BTC ETFs earlier this year.

This strategy stands in contrast to its previous move, which saw Ark Invest reduce its holding in the iShares Bitcoin Trust (NYSE:BTC) ETF by 1,000 shares on Wednesday, effectively selling $9 million in BTC ETFs.

The new move might indicate that Ark Invest sees greater potential in Coinbase stock and the broader crypto market, despite the recent market downturn.

Cathie Wood and Ark Invest have consistently expressed their optimism in the cryptocurrency industry, even during periods of volatility. In a recent X post, Cathie highlighted the trends in the economy that could lead to a ‘deflationary boom’ amid the Bitcoin selloff, reassuring the community with her positive outlook.

As one of the biggest developments in the crypto market over the past few years, the approval of spot Bitcoin ETFs in the U.S. has attracted interest from institutional investors, increasing the accessibility and liquidity of Bitcoin.

Despite Ark’s portfolio rebalancing strategy that saw it sell its Bitcoin ETF in the past, Cathie Wood has shown persistent bullishness towards BTC. Earlier reports by Coingape highlighted Wood’s prediction of Bitcoin reaching $1 million by 2030.

With Bitcoin ETFs making it easier for large investors to gain exposure to the asset, Ark Invest’s decision to secure its holdings seems logical, especially considering Cathie’s vision of Bitcoin's increasing mainstream acceptance.

This latest move also aligns with the portfolio rebalancing strategy the firm operates by, which sees it adjust its holdings based on market trends, an aspect that experts say shows the firm’s long-term confidence in digital assets.