ARK Invest, the investment management firm established by experienced investor Cathie Wood, has recently started selling off a large amount of stock from the cryptocurrency-friendly broker-dealer Robinhood (HOOD). According to a trade notification seen by Cointelegraph, ARK dumped 1.6 million Robinhood shares from its three funds on March 25. Based on HOOD’s closing price of $19.08 on Monday, this amounts to $31.5 million.
The majority of the shares, specifically 1,247,181, were sold from the ARK Innovation ETF (ARKK), totaling around $24 million. Additionally, ARK offloaded 275,933 and 128,137 HOOD shares from the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), respectively.
This recent sale by ARK is the largest one since the company began actively acquiring HOOD stock last year. It comes at a time when Robinhood has experienced significant success, with its price surging by 36% over the past 30 days.
Previously, ARK had been selling smaller portions of Robinhood shares due to compliance with Rule 12d3-1, which restricts funds from owning more than 5% of their total assets in securities.
Despite the sale, ARK’s ARKK still holds HOOD as its eighth-largest asset in its portfolio, accounting for 4.3% of its $8.2 billion assets under management. The top three assets in the portfolio are Coinbase (COIN), Tesla (TSLA), and Roku (ROKU), which make up 10.6%, 8.4%, and 7.5% respectively.
While selling off Robinhood shares, ARK has continued to purchase more shares of the online game platform Roblox (RBLX). On March 25, ARK acquired 740,115 Roblox shares for its three funds, amounting to $27 million based on the closing price.
In addition to Robinhood, ARK has also sold Coinbase shares, dumping 4,291 COIN on Monday, which is worth approximately $21 million.
Robinhood, founded in 2013, is a stock trading application that is friendly towards cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as stocks, ETFs, options, and other assets.
On March 20, 2024, Robinhood launched the Android version of its self-custodial wallet, the Robinhood Wallet app.