ARK Invest, the asset management firm founded by Cathie Wood, has divested approximately $36.4 million worth of Robinhood (HOOD) shares, totaling 1.4 million shares, from its three funds.
The sale occurred on October 8, coinciding with Robinhood's stock price which has surged over 100% year-to-date and reached multiyear highs.
The decision to sell a portion of its Robinhood holdings aligns with regulatory compliance under Rule 12d3-1, which restricts funds from owning more than 5% of an issuer’s total assets.
Following the sale, ARK's Robinhood holdings represented about 4.9% of its total assets, with the ARK Innovation ETF (ARKK) holding the largest portion of 1,094,321 shares. The ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) accounted for 191,445 and 135,665 shares, respectively.
As of October 8, Robinhood’s stock closed at $25.61, marking its highest value since November 2021. Despite its significant year-to-date growth, the stock remains well below its all-time high of approximately $44, achieved shortly after its public debut in July 2021. Over the past 30 days, the stock has increased by nearly 30%.
In contrast to its Robinhood holdings, ARK Invest has a more substantial investment in Coinbase, a leading crypto exchange.
As of October 9, ARKK reported $368 million in Coinbase shares, making it the third-largest asset in the fund after Tesla and Roku, accounting for 6.6% of its total portfolio.