ARK Invest, an investment management firm established by Cathie Wood, recently began selling off substantial quantities of Robinhood (HOOD) shares, a brokerage known for its cryptocurrency-friendly stance.
On March 25, ARK sold 1.6 million shares from its various funds, a trade notification revealed.
These shares, valued at $31.5 million based on Robinhood’s latest closing price of $19.08, represent a significant move by the firm.
The bulk of the sale came from the ARK Innovation ETF (ARKK), with 1,247,181 shares sold for approximately $24 million.
Additionally, ARK reduced its holdings in Robinhood by selling 275,933 shares from the ARK Next Generation Internet ETF (ARKW) and 128,137 shares from the ARK Fintech Innovation ETF (ARKF).
This marks the largest sale of Robinhood stock by ARK since it began accumulating the broker’s shares last year.
Robinhood’s stock had seen a 36% increase over the prior month, making the timing of the sale notable.
ARK’s sales strategy appears to align with compliance requirements, specifically Rule 12d3-1, which restricts funds from holding more than 5% of their total assets in securities.
Despite the recent sales, Robinhood remains a significant asset in ARK’s portfolio, ranking eighth and comprising 4.3% of ARKK’s $8.2 billion in assets under management.
ARKK’s top three holdings include Coinbase (COIN), Tesla (TSLA), and Roku (ROKU), with substantial allocations of 10.6%, 8.4%, and 7.5%, respectively.
Amidst its divestment from Robinhood, ARK has been actively purchasing shares of Roblox (RBLX), acquiring 740,115 shares valued at $27 million for its three funds on the same day.
Moreover, the firm continued to sell shares of Coinbase, parting with 4,291 COIN shares worth roughly $21 million.
Robinhood, founded in 2013, is a platform that facilitates the trading of cryptocurrencies, stocks, exchange-traded funds (ETFs), options, and other assets.
It recently expanded its offerings by launching a self-custodial wallet app for Android on March 20, 2024, further solidifying its position in the cryptocurrency space.
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