Cathie Wood’s ARK Offloads Robinhood Shares, Invests in Coinbase Instead

Key Takeaways

• ARK Invest significantly decreased its holdings in Robinhood across multiple ETFs.
• Cathie Wood’s company increased its positions in companies involved in genomics, cryptocurrency, and software development.
• ARK previously made a big bet on CrowdStrike.

Cathie Wood‘s ARK Invest has undergone a dramatic portfolio shift. In an unexpected twist, the investment firm has pared back its bets on Robinhood and certain corners of the tech sector.

Instead, ARK Invest has beefed up its stakes in a trio of promising areas: genomics, cryptocurrency, and other emerging technologies.

ARK Sells Robinhood Shares

In a sweeping series of transactions  on Oct. 8, 2024, ARK Invest significantly reduced its stake in Robinhood Markets, selling off hundreds of thousands of shares across multiple exchange-traded funds (ETFs).

The sell-off, which suggests a loss of confidence in the trading platform, was a notable departure from ARK’s previously bullish stance on the company.

ARK’s ARKF fund sold 135,665 shares, and its ARKK fund unloaded a staggering 1,094,321 shares—the largest single sale of the day. As per Robinhood Markets’ share price, the total amounted to $36 million.

The firm’s other ETFs, including ARKX, ARKQ, and ARKW, also participated in the Robinhood sell-off, shedding tens of thousands of shares each.

Beyond Robinhood, ARK Invest also retreated from various tech sectors, including autonomous technology and semiconductors. The firm sold off shares of Markforged Holding Corp, Materialise, Rocket Lab USA, Taiwan Semiconductor Manufacturing, and Vuzix Corp.

The breadth and scale of these sales suggest a significant repositioning by ARK Invest as the firm adjusts its portfolio to reflect shifting market conditions and its own evolving investment thesis.

Investing In Coinbase

While trimming positions in those companies, ARK Invest also made several acquisitions , focusing on sectors poised for future growth, such as genomics, cryptocurrency, autonomous technology, and software development.

Particularly, ARK increased its position in Coinbase Global by purchasing 12,994 shares worth $2.2 million.

The company’s investment suggests growing confidence in the cryptocurrency exchange’s potential, even if it contrasts with its holding reduction in Robinhood.

ARKX also expanded its exposure to cutting-edge industries by acquiring 46,858 shares of Blade Air Mobility and 500 shares of Advanced Micro Devices (AMD), pointing to ARK’s interest in air mobility and semiconductor technology.

ARK also added 76,505 shares of Amazon and 39,224 shares of CRISPR Therapeutics as part of its new pivot.