Bloomberg ETF analyst: Ark Invest reduces holdings of Coinbase to rebalance fund weightings.

Odaily News - Concerns were raised this week regarding Ark Invest, the asset management company led by Cathie Wood, selling approximately $12 million worth of Coinbase stock. Bloomberg ETF analyst James Seyffart analyzed that this is actually a standard practice for Cathie Wood, as she sells stocks whenever their prices exceed a certain weightage. Therefore, she often buys stocks she likes when they experience a significant drop and sells them when they rebound. This strategy of rebalancing the fund's weightage may make it seem like Cathie Wood is "selling winners to buy losers," but in fact, these actions are taken to maintain the stock weightage in Ark Invest's portfolio and avoid being too exposed to risk.



Data shows that Ark Invest remains one of the largest individual holders of Coinbase stock to date. (DLNews)



According to previous reports, this is the first time in nearly a year that Cathie Wood's Ark Investment has reduced its stake in Coinbase stock. On July 11th, they sold 135,000 shares of Coinbase stock, marking the first time they have sold the stock since July 26th, 2022.