Ark Invest Sells $7.8M Worth of Spot Bitcoin ETF Shares

Cathie Wood’s Ark Invest sold off 118,209 of its Spot Bitcoin ETF Shares (ARKB) worth a staggering $7.8 million.

On Wednesday, July 24, Ark Invest, which Cathie Wood owns, engaged in the initial sale of shares of its spot Bitcoin ETF ARKB since its inception in January. According to reports, Ark Invest sold 118,209 ARKB shares for an astronomical $7.76 million.

The asset manager has not disclosed any particular rationale for reducing its ownership of ARKB. The ARKB share price was trading at $65.62 as of Wednesday’s closing. ARKB’s share price has increased by 64% in the past six months, which is consistent with the price increases of BTC during the same period.

Ark Invest is renowned for adhering to investment regulations prohibiting any holding from occupying more than 10% of an ETF’s portfolio. This is due to the asset manager’s commitment to maintaining diversification within its funds. Consequently, the asset manager will continue to rebalance its funds if ARKB experiences a significant increase compared to Ark’s other holdings in the fund.

As of July 24, ARKB is the largest holding in the ARKW ETF, with a weightage of 10.98%, according to the most recent disclosure from the firm. Consequently, ARKB is assigned a greater weight than Tesla’s other holdings, Roku and Coinbase, which are assigned weights of 9.5%, 8.48%, and 8.23%, respectively.

Ark Invest’s ARKB holdings in the ARKW ETF are valued at $162.5 million. In general, the ARKW ETF fund has experienced a gain of over 33% in the past year.

In June of the previous month, Ark Invest also liquidated a substantial quantity of Coinbase shares from the ARKW fund, with a liquidation value exceeding $4.3 million. Amid the global Microsoft IT disruption associated with the cybersecurity firm, it acquired $3.5 million worth of CrowdStrike shares on the same day.

Inflows into Bitcoin ETFs have resumed

On Wednesday, the spot bitcoin ETF registered net inflows of over $44.5 million, a day after pausing consecutive inflows. The inflows were headed by BlackRock’s IBIT, which received over $66.5 million.

Conversely, Grayscale’s GBTC experienced outflows of $26.2 million. Although the parent company experienced a significant sell-off, Ark Invest’s ARKB experienced a total inflow of only $3.3 million.

Conversely, the Bitcoin price is currently experiencing volatility due to the global equity market’s sell-off, precipitated by a substantial decline in the value of US technology companies. Bitcoin is currently trading at $64,053, representing a 3.43% decline.