Key Takeaways
- ARK Invest has significantly increased its stake in Robinhood by acquiring over a million shares.
- The investment firm's latest stock purchase coincides with Robinhood's plans to expand into the UK and follows a decline in the app's stock price.
- The increase in Robinhood stock holdings contrasts with ARK's continued sale of GBTC shares, as the firm readies to introduce new ETFs targeting Bitcoin and Ether futures.
The investment company ARK Invest has made a significant investment in Robinhood, the American financial and crypto service firm.
On November 8th, ARK Invest made a strategic investment of $ 9.5 million in Robinhood, purchasing approximately 1.1 million shares.
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This transaction was spread across three of ARK's ETFs, with ARK Innovation ETF (ARKK) absorbing the majority by purchasing 888,500 shares. The ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) also participated, acquiring 152,849 and 99,697 shares, respectively.
This purchase is part of a series of recent acquisitions by ARK, which had been buying smaller quantities of Robinhood stock prior to this transaction. For instance, the ARKW fund added 197,285 shares on October 23rd, following a buy of 259,628 shares the day before.
After reporting disappointing financial results, Robinhood's stock faced a 14% decline, even as the company revealed plans to expand its operations into the European market, starting with the United Kingdom.
Simultaneously, ARK has been reducing its position in Grayscale Bitcoin Trust (GBTC), with ARKW selling 48,477 GBTC shares on the same day as the Robinhood acquisition. Since late October, ARK has decreased its GBTC holdings by 427,573 shares, which is close to the volume sold in the previous November.
The company isn't the only one purchasing or selling shares. In July, the founder of ARK Invest, Cathie Wood, sold around 135,000 shares in Coinbase, valued at about $12 million.
ARK Invest's latest trading actions display a strategic pivot, with a substantial investment in Robinhood shares and a continued sell-off of its GBTC shares. This move comes as ARK prepares to launch a series of new ETFs focusing on Bitcoin and Ether futures in partnership with 21Shares, expected to begin trading on the Chicago Board Options Exchange by mid-November.
