Cathie Wood’s investment firm, ARK Invest, jumped into the market on the day eToro debuted on Nasdaq, snapping up 140,000 shares worth $9.4 million. This move came as eToro’s stock surged 29% on its first trading day, closing at $67 after opening at $52. ARK Invest added the eToro shares to its ARK Fintech Innovation ETF (ARKF), a fund that already holds stakes in crypto-related companies like Coinbase and Robinhood.
ARK Invest’s Crypto Moves
The investment firm’s decision to buy eToro shares is consistent with its history of investing in companies on their IPO day. In April 2021, ARK Invest acquired 750,000 Coinbase shares on the company’s first trading day. On the same day as the eToro purchase, ARK Invest sold $7.9 million worth of its ARK 21Shares Bitcoin ETF (ARKB) from its ARKF and ARK Next Generation Internet ETF (ARKW) funds. Despite this sale, ARKB remains a significant holding in both funds, which is in line with ARK Invest’s diversification strategy of capping individual holdings at 10% of a fund’s portfolio.
ARK Invest also made other adjustments to its portfolio, shedding 14,930 shares of Block, the payments company founded by Jack Dorsey, worth around $873,000. At the same time, the firm added shares of a Canadian Solana ETF with staking to its ARKF and ARKW funds. Notably, the US market currently lacks a Solana ETF.
In a separate development, ARKB recorded a net inflow of $5.16 million on the day of the sale, bringing its total inflows to $2.7 billion. With these moves, ARK Invest continues to navigate the crypto investment landscape, making strategic adjustments to its portfolio in response to market developments.