ARK Invest, the investment management firm founded by Cathie Wood, has been selling off a significant amount of stock from the cryptocurrency-friendly broker-dealer, Robinhood (HOOD). According to a trade notification seen by , ARK dumped 1.6 million Robinhood shares from its three funds on March 25. This amounted to approximately $31.5 million based on the closing price of $19.08 per share. The largest portion of shares, worth around $24 million, was offloaded from the ARK Innovation ETF (ARKK), with smaller amounts from the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF).
This recent sale by ARK Invest is the largest one since the firm started accumulating Robinhood stock last year. It comes at a time when Robinhood has experienced significant success, with its price surging by 36% in the past 30 days. The previous sales of Robinhood shares by ARK were driven by compliance with Rule 12d3-1, which limits funds from owning more than 5% of their total assets in securities.
ARK Invest now holds HOOD as the eighth-largest portfolio asset in its ARKK fund, representing 4.3% of its $8.2 billion in assets under management. The top three assets in the fund are Coinbase, Tesla, and Roku. While ARK has been selling off Robinhood shares, it has been actively buying shares of the online game platform Roblox. On March 25, ARK acquired 740,115 Roblox shares across its three funds.
In addition to selling off Robinhood, ARK Invest also continued to offload shares of Coinbase, selling 4,291 COIN on Monday for approximately $21 million. Founded in 2013, Robinhood is a stock trading application that allows users to trade cryptocurrencies like Bitcoin and Ether in addition to stocks, ETFs, options, and other assets. The company recently launched its self-custodial wallet app for Android.
