ARK sells $13.47 million worth of Coinbase stock, investing 10.5 billion won in Bullish.
ARK Invest, better known as "Cathy Wood," shifted its bet on digital asset exchanges by selling off a significant portion of Coinbase (COIN) stock. Conversely, it aggressively bought shares of emerging cryptocurrency platform Bullish.
On February 2nd (local time), ARK sold a combined 134,472 shares of Coinbase stock through three ETFs, valued at approximately $22.1 million (approximately KRW 32.4 billion). These ETFs included the ARK Innovation ETF (ARKK), the Next Generation Internet ETF (ARKW), and the Fintech Innovation ETF (ARKF).
This selloff is a continuation of a selling spree that followed a short-term rebound. ARK had purchased a small amount of Coinbase stock earlier that week, but quickly reversed course and sold 119,236 shares (approximately $17.4 million, or 25.5 billion won) on the 1st. This was the first sale of 2026 and the first stock disposal since August of last year.
Coinbase's stock price surged 13% on the day, closing at around $165, but it remains down 26% year-to-date. The decline in trading volume across digital assets and the aftermath of the fourth-quarter market crash are still having an impact.
Increased bullish exposure… Additional purchases of 10.5 billion won
On the same day, ARK purchased a total of 393,057 bullish shares. By stock, ARKK purchased 278,619 shares, ARKW 70,655 shares, and ARKF 43,783 shares. The total purchase amount was approximately $10.7 million (approximately 15.7 billion won).
Bullish's stock price rose approximately 10% on the day, reaching $27 per share. However, it is down 27% year-to-date, indicating significant downward pressure. As of the fourth quarter of 2025, Bullish recorded a net loss of $563.6 million (approximately KRW 826.2 billion), a sharp deterioration from the $158.5 million (approximately KRW 232.2 billion) profit in the same period the previous year.
In addition to Bullish, ARK also added Alphabet, Recursion Pharmaceuticals, and Tempus AI during this portfolio adjustment process, while reducing the weight of some high-growth technology stocks, including Roku, The Trade Desk, and PageDuty.
Cryptocurrency Downturn Puts Pressure on ARK ETF
In its recent quarterly report, ARK stated that the sluggish cryptocurrency market had a negative impact on the performance of its major ETFs. They explained that the weakness of digital asset companies, including Coinbase, dragged down the returns of flagship ETFs like ARKK, ARKW, and ARKF.
Indeed, Coinbase's stock price plummeted 35% in the fourth quarter of last year following forced liquidations in October, a sharper decline than Bitcoin (BTC) or Ethereum (ETH). A 9% decline in trading volume on the centralized exchange compared to the previous quarter also contributed to the stock price decline.
ARK's latest move is also noteworthy because it comes at a time when attention is focused on how the digital asset landscape will change in light of President Trump's potential re-election. Amidst a general market downturn, ARK is reinforcing its "selection and focus" strategy by reallocating its portfolio to promising projects.
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What does ARK's decision to sell off a large portion of Coinbase stock and buy back new shares despite losses on bullish positions mean? It demonstrates that a strategy of "selection and focus" on structurally promising projects, rather than focusing on short-term market price fluctuations, is becoming increasingly essential even among institutional investors.
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This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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