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Asset manager Ark Invest cut its exposure to major crypto-linked assets at once on Sept. 14 (local time).
On Sept. 15, blockchain outlet The Crypto Basic reported that Ark Invest sold 1,528,953 shares of the ARK-21Shares spot bitcoin exchange-traded fund (ETF) ARKB, according to transaction details it disclosed that day. The stake was worth about $40 million based on the Sept. 14 close.
It also reduced its Circle holdings. Ark Invest sold 142,350 Circle shares through 2 funds, worth about $13.8 million. Circle shares closed up 7.53 percent at $97.42.
It also continued selling Coinbase. Ark Invest disposed of 36,628 Coinbase shares worth about $7 million. Coinbase shares ended the session up 9.24 percent at $191.45.
The 3 assets whose weightings Ark Invest cut that day all closed higher. The sales were not limited to those large crypto-linked names. It also sold 153,881 shares of BitMine Immersion Technologies for about $3.96 million and sold 18,280 shares of Bullish worth about $687,693. BitMine Immersion Technologies closed up 2.92 percent at $25.76, and Bullish finished up 7.12 percent at $37.62.
The transactions are seen as a portfolio rebalancing on a day when crypto-related stocks showed strength. Ark Invest frequently adjusts its holdings based on stock prices and changes in portfolio weightings, and it limits the weight of any single holding in its ETFs to no more than 10 percent.
Ark Invest’s rebalancing coincided with a period when discussions resumed in the United States on digital asset legislation. U.S. Senate Republicans on Sept. 14 released a revised draft of the Clarity Act, which governs the market structure for digital asset markets. The revision included some items sought by Democrats such as ethics rules, as well as changes that U.S. President Donald Trump had previously agreed to.
But the bill hit a snag after it failed to secure the 60 votes needed in a cloture vote to begin floor consideration on Sept. 15. With uncertainty persisting over efforts to overhaul the crypto regulatory framework, Ark Invest adjusted its holdings during a rise in related assets ahead of the vote.
It was not confirmed whether the sales were a response based on expectations for the Clarity Act vote outcome. Still, attention is on whether Ark Invest will continue cutting exposure in future trading, after it moved to sell during an upswing in crypto-linked assets.
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Yoonseo Leeyslee@d-today.co.kr
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