Cathie Wood’s Ark Invest has purchased approximately $14 million worth of shares in Robinhood Markets, according to a recent filing. The acquisition, made for the firm’s flagship Ark Innovation ETF, continues a trend of the firm investing in companies tied to the cryptocurrency and financial technology sectors.
On Tuesday, Ark Invest disclosed that its ARK Innovation ETF had recently acquired 123,336 Robinhood Markets shares, valued at $14.2 million.
ARK has increased the stock’s weighting to 4.09% of the ETF’s total holdings due to the recent acquisition of Robinhood shares. On Friday, Robinhood shares were acquired by the ARKK fund for approximately $9 million.
The most recent acquisition was made just days after acquiring 2.53 million Bullish shares across three of its ETFs.
Ark Invest’s Persistent Interest in Robinhood
ARK, which Cathie Wood leads, has been actively pursuing long-term capital growth from global players that capitalize on disruptive innovation. For example, Robinhood experienced a substantial increase in its customer base, which reached 26.5 million in July, compared to the previous month.
Robinhood’s cryptocurrency revenue increased by 98% to $160 million due to increased trading volumes.
Robinhood’s acquisition of Bitstamp was also well-timed, as it occurred during rapid Bitcoin adoption among institutions worldwide. Furthermore, the organization broadened its product line by introducing USDG, a stablecoin regulated in the European Union.
On Monday, Robinhood stock closed at $115.02, representing a 0.74 percent increase, according to Yahoo Finance data. Additionally, the stock has increased by 4.81% in the past month and by 208.70% year-to-date.
Did ARK previously sell Robinhood shares?
Cathie Wood’s investment vehicle sold $5.8 million of Robinhood shares and $6.5 million of Coinbase Global shares last month, as previously reported.
Stock sales rallied as Bitcoin reached new all-time highs, reaching $118,080 in early July. Subsequently, the world’s largest cryptocurrency surged above $124.4K.
In the meantime, Robinhood is under scrutiny in the United States. Florida’s attorney general has investigated its crypto division, alleging that it marketed itself as the “least expensive way to purchase crypto.”