Cathie Wood’s ARK Sheds $40 Million of Its Own Bitcoin ETF Ahead of Senate Vote

Add preferred source
Cathie Wood’s Ark Invest sold more than $40 million of its ARK 21Shares Bitcoin ETF on Monday, cutting roughly 1.5 million shares across two of its actively managed funds. The firm also reduced positions in Coinbase, Circle, Bullish, and BitMine, alongside technology holdings including Amazon, AMD, and Alphabet. The broad-based selling came one day before the Senate’s vote on the CLARITY Act, with Bitcoin slipping below $77,000 on Tuesday morning. Spot Bitcoin ETFs saw $462 million in net outflows last week before rebounding with $160 million in Monday inflows. Ark added shares of Meta Platforms and AeroVironment as part of its rebalancing.

Key Elements

Cathie Wood’s Ark Invest unloaded more than $40 million of its own spot Bitcoin exchange-traded fund on Monday, part of a sweeping reduction across nearly every crypto-linked position in its actively managed portfolios as digital asset prices extended a sharp month-long rally.

The firm trimmed 1.06 million shares of the ARK 21Shares Bitcoin ETF (ARKB) through its ARK Next Generation Internet ETF (ARKW) and another 466,133 shares through the ARK Fintech Innovation ETF (ARKF), according to trade disclosures. With ARKB closing at $26.19 on Monday, the combined sale was worth roughly $40 million and represented approximately 1.5% of the respective funds’ holdings.

The disposals came just ahead of Tuesday’s Senate vote on the CLARITY Act, a legislative package that has kept crypto markets on edge as bipartisan consensus remains elusive. Bitcoin slipped below $77,000 early Tuesday, down 1.2% over the prior 24 hours, after climbing 23% over the past month. Retail sentiment on Stocktwits around the largest cryptocurrency had deteriorated to “extremely bearish” territory.

Broad-Based Crypto Stock Reductions

Ark’s selling extended well beyond its in-house Bitcoin product. In the flagship ARK Innovation ETF (ARKK), the firm sold shares of Coinbase Global (COIN), Circle Internet Group (CRCL), Bullish (BLSH), and BitMine Immersion Technologies (BMNR). Circle accounted for the largest dollar-weighted crypto sale in ARKK, with 113,369 shares offloaded, followed by 36,628 shares of Coinbase, 153,881 shares of BitMine, and 18,280 shares of Bullish.

Ark also sold an additional 28,981 shares of Circle through ARKW, bringing the total Circle reduction across both funds to more than 142,000 shares. Based on Monday’s trading prices, the Coinbase sale was worth approximately $7 million, while the Circle disposal across both vehicles totaled roughly $13.8 million. The BitMine and Bullish sales were valued at about $3.96 million and $688,000, respectively.

The pre-market reaction on Monday reflected the selling pressure. Circle shares dipped more than 5%, while Coinbase and BitMine both fell more than 4%. Bullish held up relatively better, declining about 2% and registering “neutral” retail sentiment on Stocktwits, compared with “bearish” readings for Coinbase and BitMine and an improving but still “bearish” outlook for Circle.

Technology Positions Also Trimmed

The portfolio adjustments were not confined to crypto. In ARKK, Wood’s team reduced positions in several large technology and growth names, including Amazon.com (AMZN), Advanced Micro Devices (AMD), Palantir Technologies (PLTR), Shopify (SHOP), CoreWeave (CRWV), and Alphabet (GOOG). The largest non-crypto sale by share count was 87,027 shares of Tempus AI (TEM), followed by 64,923 shares of CoreWeave and 49,844 shares of Shopify.

On the buy side, Ark added 10,997 shares of Meta Platforms (META) through ARKW. The firm also purchased 13,327 shares of AeroVironment (AVAV) through the ARK Autonomous Technology & Robotics ETF (ARKQ) and 15,689 shares through the ARK Space Exploration & Innovation ETF (ARKX).

ETF Flows and Market Context

Monday’s sales marked one of the broadest crypto-adjacent selling days across Ark’s funds this year. The firm’s investment discipline caps any single holding at 10% of a fund’s portfolio to maintain diversification across its ETF lineup, and Wood has described cryptocurrencies as a key innovation for financial markets despite the routine rebalancing.

The broader spot Bitcoin ETF complex has shown signs of cooling after a strong run. U.S. spot Bitcoin ETFs recorded net outflows of $462 million last week, snapping a three-week streak of consecutive inflows, according to data from SoSo Value. BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest crypto-focused fund, saw more than $52 million in outflows during the period. Monday brought a reversal, however, with investors pouring $160 million back into spot Bitcoin ETFs.

ARKB itself has delivered a mixed performance picture. While the fund has rallied more than 22% over the past month, it remains down 12.08% year-to-date. The ETF closed Monday’s regular session up 2.22% at $26.19.

Ark Invest is privately held and does not trade on a public exchange.

Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.

Source: finance.biggo.com