Cathie Wood's Ark Invest Dumps $123M Worth of Coinbase stock

Cathie Wood's Ark Invest has divested approximately $123 million worth of shares in Coinbase ( COIN ) and Robinhood ( HOOD ) this week, signaling a significant shift in sentiment towards cryptocurrency-related stocks.

Ark Invest, known for its bullish stance on disruptive technologies, made headlines as it offloaded substantial holdings in both Coinbase ( COIN ) and Robinhood amid a surge in their stock prices. However, the timing of the divestments coincided with a notable slump in the prices of these companies' shares, raising questions about the firm's outlook on the crypto market.

The divestment spree began on Friday, March 22, with Ark Invest selling off about $55.60 million worth of COIN stock. The firm's ARK Innovation ETF (ARKK) witnessed a massive dump of 151,271 Coinbase shares, while ARK Next Generation Internet ETF (ARKW) and Ark Fintech Innovation ETF (ARKF) also registered significant divestments.

This sell-off continued throughout the week, with Ark Invest shedding approximately $52.27 million worth of Coinbase stock on Thursday alone. The total weekly divestment amounted to a staggering $115.16 million, reflecting Ark Invest's bearish stance on crypto stocks in the short term.

The timing of Ark Invest's divestments is notable, as it coincided with fresh 52-week highs for both COIN and HOOD stocks. However, the subsequent slump in prices following Ark Invest's sell-off raises questions about the firm's rationale and outlook on the crypto market.

Cathie Wood's bearish outlook on crypto stocks contrasts with her firm's previous investments in disruptive technologies. This shift in sentiment suggests a cautious approach towards the volatile crypto market, with Ark Invest opting to reduce its exposure to Coinbase and Robinhood amid uncertain market conditions.

While the massive dump from Ark Invest may raise concerns among investors, it also highlights the firm's proactive approach to managing its investment portfolio. By reassessing its positions in response to changing market dynamics, Ark Invest aims to navigate the volatile crypto landscape while maximizing returns for its investors.