In a noteworthy move amidst market volatility, Cathie Wood’s ARK Invest adjusted its crypto portfolio on Tuesday. They decided to sell off approximately $9 million worth of their own spot Bitcoin ETF (ARKB), reinvesting that capital into shares of Coinbase (COIN) as the wider cryptocurrency market experienced a significant downturn.

ARK Invest Swaps Nearly $9 Million of Its Bitcoin ETF for Coinbase Amid Crypto Market Rout

Looking at the transaction details, we can see ARK Invest divested 98,060 shares of ARKB, valued at around $8.6 million. Simultaneously, they made a purchase of 41,032 Coinbase shares for their Next Generation Internet ETF (ARKW).

This investment of $8.7 million in Coinbase occurred as COIN stock prices dipped nearly 6.5%, landing at $212.49, reflecting the broader crypto market sell-off taking place.

The crypto markets on Tuesday were indeed turbulent, with Bitcoin (BTC) taking a hit and falling below $87,000 – reaching a three-month low. This price drop also triggered unprecedented outflows from U.S. spot Bitcoin ETFs.

Data from SoSoValue indicates that the sector experienced roughly $940 million in net outflows. This marks the largest single day of capital leaving these funds since they were first introduced in January of this year, 2024.

Even with the market facing headwinds, ARK Invest’s recent action signals a belief in the enduring value of Coinbase as a leading platform in the crypto exchange space.

Interestingly, this Coinbase purchase represents their largest in dollar terms since August 5th, 2024, when ARK acquired 93,800 shares for a substantial $17.8 million.

This strategic shift, moving from Bitcoin ETFs into Coinbase stock, might suggest that ARK Invest anticipates greater potential gains in companies building crypto infrastructure compared to directly holding Bitcoin – at least in the near future.

*This is not investment advice.