- ARK Invest sold 1.4 million Robinhood shares worth $36.4 million to comply with portfolio regulations.
- Robinhood stock has risen over 100% year-to-date, reaching its highest value since 2021.
- ARK still holds significant shares in Robinhood and Coinbase, with the latter being one of its top three assets.
ARK Invest, led by well-known Bitcoin supporter Cathie Wood, has offloaded another large portion of its Robinhood holdings. According to a trade notification, ARK sold 1.4 million shares of Robinhood worth $36.4 million on October 8 across three of its funds.
Compliance with Regulatory Rules
This sale followed previous ones by ARK and was primarily driven by the firm’s need to comply with Rule 12d3-1, which prevents funds from holding more than 5% of their total assets in any single issuer’s securities. The recent sale came at a time when Robinhood’s stock price surged by over 100% year-to-date, reaching multiyear highs.
On October 8, Robinhood closed at $25.61, its highest value since November 2021. Despite the stock’s impressive growth in 2024, it remains below its all-time high of around $44, achieved shortly after its initial public offering in July 2021.
ARK Invest’s Portfolio Shift
ARK’s sale involved its Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF). The largest portion, 1.09 million shares, was sold from the ARKK fund, while ARKW and ARKF sold 191,445 and 135,665 shares, respectively.
As of October 9, ARKK still held $274 million in Robinhood shares, or about 4.9% of its total assets. Additionally, ARK’s largest crypto-related holding remains Coinbase, with $368 million in shares, making up 6.6% of ARKK’s total portfolio, placing it behind only Tesla and Roku.
