ARK Invest Capitalizes on Market Dip with Strategic Purchases of Coinbase and Robinhood Shares

ARK Invest Capitalizes on Market Decline with Strategic Purchases

In a move that underscores its investment strategy, ARK Invest seized the opportunity presented by Monday’s significant market downturn to acquire shares of Coinbase (COIN) and Robinhood (HOOD) for the first time in several months. Cathie Wood’s renowned investment management firm invested a substantial $17.8 million in COIN, marking its first purchase of the cryptocurrency exchange’s stock since June 6, 2023, when it had bought $21.6 million worth of shares.

Additionally, ARK Invest added $11.2 million in Robinhood shares, representing the first acquisition of HOOD since February 13 of this year. The market experienced a sharp sell-off on Monday, with COIN witnessing a 7.3% decline, closing at $189.47. HOOD was not spared either, dropping 8.17% to close at $16.42. This decline was among the steepest losses observed in both the cryptocurrency and global stock markets in recent years.

ARK Invest is known for capitalizing on price dips, often purchasing shares with the anticipation of selling them once their values recover. The firm has a strategic guideline to prevent any single holding from exceeding a 10% weight in any of its exchange-traded funds (ETFs), which has influenced its recent selling of COIN shares.

Following these latest acquisitions, COIN now represents 8.55% of ARK’s Innovation ETF (ARKK), 6.73% of its Next Generation Internet fund (ARKW), and 9.72% of its Fintech Innovation ETF (ARKF).