ARK Invest's $36 million sale of Robinhood shares comes as the stock price has risen over 100% year-to-date, reaching multi-year highs.

ARK Invest Sells Stake in Robinhood

ARK Invest, the asset manager known for its focus on #Cryptocurrencies and led by prominent #bitcoin☀ bull #CathieWood , has sold a significant portion of its holdings in Robinhood (HOOD). According to a trading report seen by Cointelegraph, ARK sold 1.4 million shares of Robinhood, valued at $36.4 million, from three of its funds on October 8.

Compliance with Rule 12d3-1

Similar to previous sales of Robinhood by ARK, this transaction was driven by the fact that Robinhood’s position in ARK's portfolio was approaching 5% of the portfolio’s total weight. This is in line with Rule 12d3-1, which prohibits funds from holding more than 5% of their total assets in the securities of a single issuer.

Robinhood Stock Hits Multi-Year Highs

The sale came as Robinhood's stock price surged by more than 100% year-to-date. On October 8, Robinhood closed at $25.61, reaching its highest level since November 2021. Over the past 30 days, the stock has gained nearly 30%, although it remains below its all-time high of $44, which was reached shortly after its IPO in July 2021.

Robinhood all-time price chart. Source: TradingView

Coinbase as a Major Holding in ARK Funds

The sale of Robinhood shares involved three ARK funds: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). The largest portion, 1,094,321 shares, was sold by ARKK, while ARKW and ARKF sold 191,445 and 135,665 shares, respectively.

ARK Innovation ETF operations on Oct. 8, 2024. Source: ARK Invest

As of October 9, ARKK still held $274 million worth of Robinhood shares, representing 4.9% of its total assets.

In addition to #Robinhood , ARKK holds a significant stake in Coinbase, with $368 million in shares as of October 9, making up 6.6% of ARKK’s total portfolio. Coinbase is the fund's third-largest holding, after #Tesla and Roku.

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