Ark Invest’s current ARKB holdings in the ARKW ETF have a value of $162.5 million.
On Wednesday, July 24, Cathie Wood’s Ark Invest sold off shares of its spot Bitcoin ETF ARKB in the first such measure since the launch in January. As per reports, Ark Invest sold 118,209 ARKB shares worth a staggering $7.76 million.
The asset manager hasn’t provided any specific reason as to why it diluted its stake in ARKB. As of Wednesday’s closing, the ARKB share price was trading at $65.62 Over the past six months, the ARKB share price has gained 64% which is pretty much in line with the BTC price gains in the same period.
Ark Invest is popular for following the investing rules and would not allow any individual holding to take up more than 10% of an ETF’s portfolio. This is because the asset manager seeks to maintain diversification within its funds and thus continues to rebalance its funds if ARKB rises much higher in comparison to Ark’s other holdings in the fund.
As per the firm’s latest disclosure, ARKB is the largest holding in the ARKW ETF with a weightage of 10.98% as of July 24. Thus, ARKB has more weightage than other holdings of Tesla, Roku, and Coinbase have a weightage of 9.5%, 8.48%, and 8.23%, respectively.
Ark Invest’s current ARKB holdings in the ARKW ETF have a value of $162.5 million. Overall, the ARKW ETF fund has gained more than 33% over the past year.
Last month in June, Ark Invest also offloaded a large amount of Coinbase shares from the ARKW fund, with the liquidation value worth over $4.3 million. On the same day, it acquired $3.5 million worth of CrowdStrike shares amid the global Microsoft IT outage associated with the cybersecurity firm.
Bitcoin ETF Inflows Resume
A day after taking a break from consecutive inflows, the spot bitcoin ETF registered net inflows of over $44.5 million on Wednesday. BlackRock’s IBIT led the inflows clocking more than $66.5 million in total inflows.
Grayscale’s GBTC, on the other hand, recorded outflows of $26.2 million. Ark Invest’s ARKB saw total inflows of only $3.3 million, despite this strong sell-off coming from the parent firm.
On the other hand, Bitcoin price is trading under pressure amid the sell-off in global equities triggered by a strong sell-off seen in the US tech firms. Currently, Bitcoin is trading 3.43% down at $64,053.
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