Bitcoin’s price has started to rise again, and it is leading the rest of the crypto market as investors’ mood continues to improve. Bitcoin has returned to key levels today, breaking through resistance and setting the stage for potential gains in the future. The renewed hope comes at a time when more institutions are interested and trading is picking up on major exchanges.
However, even though Bitcoin is rising, ARK Invest, the asset management company run by Cathie Wood, has begun to reduce its investments in stocks related to cryptocurrency. In particular, ARK has sold a lot of its shares in Coinbase (COIN) and Robinhood (HOOD), two companies that have been in the firm’s innovation-focused ETFs for a long time.
Regulatory filings and trading disclosures show that ARK’s ARK Innovation ETF (ARKK) sold more than 200,000 shares of Coinbase and a smaller but still significant number of Robinhood shares this week. This change in strategy could be to lock in profits or rebalance the fund after the crypto equity sector has done well for a while.
Coinbase has been one of the biggest winners from the rise in Bitcoin prices and interest in digital assets. Its stock has gone up a lot in the last few months. Also, retail investors are once again interested in Robinhood, which lets people trade cryptocurrencies on its platform.
Even so, ARK’s decision to reduce its investments in certain stocks could indicate that the firm is being cautious due to regulatory pressures and market volatility. ARK is still invested in the crypto space even though it has cut back on its holdings. It still supports long-term blockchain innovation.
Bitcoin’s rise to the top of the current rally shows that it is the most important digital asset. As money comes in and people start to pay more attention to crypto again, investors are now wondering if altcoins and stocks in the space will follow BTC’s lead or go their way as companies like ARK rebalance their portfolios.
Also read: Tether Mints Another Billion as Bitcoin Eyes Fresh Breakout
