ARK Invest, the investment firm founded by Cathie Wood, a prominent Bitcoin advocate, has been actively accumulating stocks of the crypto-friendly app Robinhood (HOOD). On November 8, ARK made a significant purchase of Robinhood stock, acquiring a total of 1.1 million shares for about $9.5 million in a single day, as indicated by a trade notification seen by Cointelegraph.
The purchase involved three innovation exchange-traded funds (ETF) managed by ARK, including ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). The biggest allocation of shares in the purchase was made through ARKK, which bought 888,500 HOOD shares, accounting for 78% of the total daily purchase. ARKW and ARKF allocated 152,849 shares and 99,697 shares, respectively.
This mega purchase was a departure from the more modest Robinhood equity-buys by ARK, as its previous purchases involved significantly smaller amounts. For instance, on October 23, ARK acquired 197,285 Robinhood shares for its ARKW funds, followed by a purchase of 259,628 HOOD shares on the previous day.
The latest acquisition by ARK coincided with Robinhood’s announcement of its plans to expand into Europe in the coming weeks, particularly exploring the establishment of brokerage operations in the United Kingdom. However, the announcement coincided with a more than 14% plunge in HOOD stock following Robinhood’s worse-than-expected results as trading activity and users declined. On November 8, Robinhood closed at $8.37 according to data from TradingView.
While actively buying Robinhood, ARK has continued to sell Grayscale Bitcoin Trust (GBTC) shares, with ARKW selling 48,477 GBTC for $1.4 million on November 8. Similarly, on November 6, ARKW sold another large portion of GBTC, amounting to 139,506 shares, worth nearly $4 million.
ARK began selling GBTC shares in late October 2022 after a year-long break from touching the GBTC stock. Since October 24, ARK has sold a total of 427,573 GBTC shares, worth about $11.9 million at the time of writing, approaching the amount of GBTC shares sold by ARK in November 2021.
In addition to its stock buying and selling activities, ARK has announced the launch of new ETFs focused on Bitcoin and Ether futures contracts in partnership with its major crypto ETF partner, 21Shares. According to joint prospectuses, the firms expect to launch trading of five new crypto products on the Chicago Board Options Exchange by November 16.
In conclusion, ARK Invest’s recent heavy investment in Robinhood, along with its ongoing selling of GBTC shares and the launch of new crypto-focused ETFs, demonstrate the firm’s commitment to navigating the rapidly evolving landscape of cryptocurrencies and digital assets. As the market continues to mature, the actions of prominent investment firms like ARK will undoubtedly influence the direction of the crypto industry.