Cathie Wood’s Ark Invest executed a significant portfolio rebalancing on Thursday, March 21, selling off large positions in Coinbase (COIN) and Robinhood (HOOD) while buying into freshly listed Reddit (RDDT) shares. The moves reflect the fund’s evolving view on digital asset exposure and new growth opportunities.
Massive Coinbase and Robinhood Sales
Ark Invest unloaded 133,533 shares of Coinbase from its flagship ARK Innovation ETF (ARKK), valued at approximately $52.27 million based on Thursday’s close. Additionally, 96,003 Robinhood shares worth $1.77 million were sold from the ARKW ETF. The ARKW fund also shed another 59,125 Coinbase shares (over $15 million), bringing the total Coinbase disposal to nearly 193,000 shares.
Despite both stocks posting gains on Thursday—Coinbase up 1.99% and Robinhood up 2.86%—they reversed into negative territory early Friday. Analysts linked the sell-off to growing regulatory uncertainty around crypto exchanges and the recent outflows from spot Bitcoin ETFs.
Betting on Reddit: A Social Media IPO Play
Simultaneously, Ark Invest allocated capital to Reddit, which made its NYSE debut on March 21. The fund purchased 9,982 RDDT shares, worth roughly $500,000 at Thursday’s closing price. Reddit shares surged 7.31% on the first day but slipped 4.58% on Friday, illustrating typical volatility for a hot IPO.
Reddit’s return to public markets comes after its role in the 2021 GameStop saga. The company priced its IPO at $34 per share and saw the stock peak above $50 intraday. Ark’s entry signals confidence in Reddit’s ability to monetize its large user base, many of whom overlap with cryptocurrency enthusiasts.
The Strategy Behind the Moves
Cathie Wood has repeatedly stated that Coinbase and Robinhood remain important players in the digital asset space, but near-term valuation and regulatory headwinds prompted the reduction. Meanwhile, Reddit is seen as a proxy for ‘retail Wall Street,’ with strong alignment to the crypto community. Ark’s bet may hinge on Reddit’s advertising growth and ecosystem expansion.
As of March 22, Ark Invest still holds substantial positions in both Coinbase and Robinhood. However, this week’s sales were among the largest in recent months, and traders are watching for further shifts from the high-profile fund.