The Big Buy: ARK Invest Goes All In on Robinhood
In a move that has crypto watchers buzzing, ARK Invest, that investment juggernaut led by the ever-enthusiastic Cathie Wood, splurged on 1.1 million shares of Robinhood, the app that made trading feel as easy as ordering takeout. On November 8, they dropped around $9.5 million into this purchase, leading to some raised eyebrows and perhaps a few slack jaws in the investment community.
Breaking Down the Numbers
So, what’s the scoop? A majority of the stock was picked up by ARK’s flagship ARK Innovation ETF (ARKK), which nabbed 888,500 shares, accounting for a whopping 78% of the haul! The other two ETFs involved—ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF)—got in on the action too, with 152,849 and 99,697 shares, respectively. Clearly, when it comes to Robinhood, ARK is not messing around.
Robinhood’s Rollercoaster Ride
Despite the hefty investment, Robinhood hasn’t been exactly riding high lately. On the same day that ARK made its bulk purchase, Robinhood’s stock took a nosedive of over 14% after revealing a downturn in trading activity and users. Talk about timing! The app’s stock closed at $8.37, presumably leaving many investors questioning whether they were getting a deal or just bait for a future financial headache.
Past Purchases: A Meme of Consistency
ARK’s commitment to Robinhood isn’t just a fleeting crush; it’s been a steady courtship. Just weeks prior, ARK had been gradually picking up shares—197,285 shares on October 23 followed by another 259,628 shares the day before. It’s almost like ARK can’t resist bringing home a souvenir every time they walk past the Robinhood store.
The Great Crypto Trust Shuffle
While ARK is pouring money into Robinhood, they’ve been simultaneously cleaning house by selling off their Grayscale Bitcoin Trust (GBTC) shares. On November 8, they sold another 48,477 shares for about $1.4 million. Since late October, they’ve sold an eye-popping total of 427,573 GBTC shares—equaling over $11.9 million. ARK seems to be shifting gears, moving from digital currencies to stocks that are tied to a more easily digestible app experience.
Future Plans: Are New ETFs on the Way?
And speaking of shifting gears, ARK recently announced plans for new ETFs focusing on Bitcoin and Ether futures with their crypto partner, 21Shares. They expect to launch five new products by November 16, just in time to capture that pre-holiday trading frenzy. It looks like ARK is gearing up for the next chapter in its ever-evolving investment saga.
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