ARK Invest, a US-based asset manager led by pro-bitcoin investor Cathie Wood, has sold another significant portion of its Robinhood holdings.
A daily trade activity notification shows Ark Invest offloaded 1.4 million Robinhood (HOOD) shares. These shares were spread across three of the company’s investment funds and were sold for a total value of $36.4 million.
ARK Invest Sells Robinhood Shares to Comply with SEC Regulations
According to a post on X, Ark Invest sold 1.4 million HOOD shares worth $36.4 million on Tuesday, October 8.
Cathie Wood and Ark Invest’s trade activity from today 10/8 pic.twitter.com/tZmZdeS1Y1
— Ark Invest Daily (@ArkkDaily) October 9, 2024
Like its previous HOOD shares sales, ARK made the latest move because its Robinhood holdings were nearing 5% of its total portfolio weight.
So, reducing its Robinhood shares was essential to comply with Rule 12d3-1, which prohibits funds from owning more than 5% of an issuer’s securities.
One X user pointed out that ARK is dumping its Robinhood shares when the stock is experiencing strong growth. Robinhood’s stock price has surged 100% since the beginning of the year, reaching levels not seen in years.
Dumping HOOD while it’s ready to moon? LOL
— Reformed Sinner (@SinnerReformed1) October 9, 2024
On October 8, TradingView data showed that Robinhood stock closed at $25.61, its highest value since November 2021. Over the past month alone, the stock has increased by nearly 30%, reflecting significant investor confidence and momentum in the market.
Although Robinhood’s stock has experienced remarkable growth in 2024, it is still well below its all-time high. It peaked at around $44 shortly after Robinhood went public in July 2021.
Since then, the stock has faced significant struggles which have affected its value. While the current surge in 2024 shows positive momentum and investor interest, HOOD still has a long way to go before it can reach or surpass the previous high.
ARK Invest Strategically Sells Robinhood Shares Across Three Funds While Maintaining Strong Holdings in Coinbase
ARK’s recent sale of Robinhood shares was conducted through three of its investment funds. These funds are the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the RK Fintech Innovation ETF (ARKF).
Cathie Wood and Ark Invest’s trade activity from today 10/8 pic.twitter.com/tZmZdeS1Y1
— Ark Invest Daily (@ArkkDaily) October 9, 2024
ARKK sold 1,094,321 Robinhood shares, making it the most significant contributor to the transaction. The other two funds contributed smaller amounts; ARKW sold 191,445 shares, while ARKF offloaded 135,665.
By distributing these shares across its various funds, ARK Invest has demonstrated a strategic approach to asset management and its commitment to maintaining compliance with regulatory limits.
Data regarding the ARK Innovation ETF (ARKK) reveals that the fund still maintains a substantial investment in Robinhood. ARKK held approximately $274 million worth of Robinhood shares, representing about 4.9% of the fund’s assets.
The ARK Innovation ETF has a larger investment in Coinbase, the prominent U.S. cryptocurrency exchange. As of October 9, the fund reported holdings worth $368 million in Coinbase Shares. This represents 6.6% of ARKK’s total portfolio, indicating a robust crypto sector commitment.
Coinbase is ARKK’s third-largest asset, following Tesla and Roku, highlighting the firm’s confidence in innovative technology companies.