- Ark Invest disposed of 44,609 shares of its ARKB Spot Bitcoin ETF for $2.8 million as part of a strategy to rebalance its portfolio.
- The firm still holds $139.7 million in ARKB, making it the second-largest asset in ARKW.
- US spot Bitcoin ETFs attracted $4.5 million in inflows, whereas Ethereum ETFs saw outflows.
Cathie Wood’s Ark Invest has garnered attention by liquidating 44,609 shares of its ARKB Spot Bitcoin ETF, worth $2.8 million. Conducted on a recent Monday, this sale is part of Ark’s continuous strategy to adjust its fund allocations.
This isn’t the first time Ark has made such a move; the firm previously offloaded $6.9 million of ARKB shares in early August and $7.8 million in July. In total, Ark Invest has withdrawn $17.5 million from its Bitcoin ETF.
Ark Invest mitigating overexposure to any single asset
Even with these divestments, Ark Invest holds a substantial $139.7 million in the ARKB ETF, which is positioned as the second-largest asset in its Next Generation Internet ETF (ARKW). The ETF maintains a significant 9.93% weighting within the ARKW portfolio.
Tesla remains the largest asset in the ARKW fund, with a 10.15% weighting, translating to about $142.9 million.
Ark’s recent transactions align with its broader strategy of preventing any individual holding from surpassing 10% of an ETF’s portfolio. By limiting weightings, the firm aims to foster adequate diversification and avoid overexposure to a single asset.
Ark has proactively adjusted its asset allocations to sustain balance across its funds, especially in light of ARKB’s impressive 26.5% increase year-to-date.
As of Monday, ARKB was trading at $63.25, reflecting a 0.8% gain for the day. This uptick reflects a general optimism in the Bitcoin market, with Bitcoin trading steadily at around $63,676.
US spot Bitcoin ETFs experience robust inflows
While Ark continues to fine-tune its Bitcoin exposure, US spot Bitcoin ETFs are witnessing strong inflows, with a net increase of $4.5 million just on Monday, marking three consecutive days of positive momentum.
Conversely, US spot Ethereum ETFs have observed significant outflows since July.
Ark Invest’s strategic rebalancing highlights its commitment to diversification as it navigates the dynamic landscape of digital assets.
