TLDR:
Ark Invest sold $20 million worth of Coinbase shares and invested in OpenAI for its Venture Fund. The investment firm aims to rebalance its fund weightings to maintain diversification within its funds.
Summary:
Ark Invest, led by Cathie Wood, offloaded 77,561 Coinbase shares worth $20.4 million across two of its exchange-traded funds. This move was part of the firm’s strategy to ensure no individual holding takes up more than 10% of an ETF’s portfolio to maintain diversification. Coinbase is the second-largest holding in both ARKK and ARKW funds, with market values of $696 million and $169 million, respectively. The ARKK and ARKW funds have seen significant growth over the past year, up 24% and 55%, respectively.
In addition to selling Coinbase shares, Ark’s Venture Fund invested in OpenAI for the first time. OpenAI, led by Sam Altman, is known for its groundbreaking AI research and applications. The Venture Fund aims to hold shares of companies throughout their lifecycle, generating a return of 21% since its inception in 2022. Previously, the fund invested in OpenAI rival Anthropic.
Overall, Ark Invest’s strategic moves in selling Coinbase shares and investing in OpenAI reflect its commitment to maintaining a diversified portfolio and exploring new avenues of growth in the tech and AI sectors.
