Cathie Wood’s Ark Invest Dumps $7M Robinhood Shares, HOOD Stock Dips 2%

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As a crypto investor with some experience under my belt, I’m keeping a close eye on the latest developments between Ark Invest and Robinhood Markets Inc. (HOOD). The recent sell-off of over $7.5 million worth of Robinhood shares by Cathie Wood’s firm is concerning. Despite the acquisition of Bitstamp, Ark continues to reduce its exposure to HOOD, which raises some eyebrows.

On June 10, 2024, Ark Invest, under the leadership of Cathie Wood, executed sizeable transactions marked by a notable sale of Robinhood Markets Inc. (HOOD) shares. Despite Robinhood’s recent acquisition of Bitstamp, Ark Invest has persisted in shedding its HOOD holdings. Consequently, HOOD’s stock value took a hit today, plunging in pre-market trading after Ark offloaded approximately $7.5 million in shares.

Ark Invest By Cathie Wood Sells Robinhood Shares

Based on the most recent information, Ark sold a total of 323,801 Robinhood shares among three different funds: Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF). This calculated sale brought in approximately $7.58 million.

Additionally, the day’s most significant financial deal for Ark was this sale. This action occurs while Ark Invest is in the process of adjusting its investments, placing emphasis on expanding industries like biotech and tech.

Ark decreased its holdings in Robinhood while concurrently boosting investments in various biotech and tech firms. This action underscores their optimistic outlook for the future growth of these industries. Additionally, the recent market downturn suggests that Ark Invest seized the opportunity presented by the significant surge in HOOD’s stock price on Monday.

Expert: Cathie Wood’s Ark Invest previously sold a large amount of Coinbase Global, Inc. (COIN) shares. However, there have been no major sell-offs observed from the firm recently. On the flip side, Ark Invest sold 66,200 HOOD shares on June 7, worth approximately $1.46 million.

HOOD Stock Slips In Pre-market Trading

As a researcher studying the financial markets, I’ve observed some intriguing price movements in the case of Robinhood (HOOD) recently. Following Ark Invest’s selloff, HOOD saw a decline of 2.13% to $22.92 during the pre-market hours on June 11. However, an impressive rebound occurred on Monday with a gain of 5.59%, closing at $23.42. Interestingly enough, this upward trend has persisted since Robinhood’s acquisition of Bitstamp.

The price of HOOD stock has seen a remarkable increase of 11.42% over the past week. This surge can be attributed to the unexpected announcement of a $200 million deal by the crypto platform to acquire Bitstamp. Industry analysts consider this move as a strategic development for the company, bringing about potential benefits in the long term.

Ark Invest’s persistent selling of HOOD stock indicates a pessimistic view towards its future performance. The firm appears to focus on profiting from short-term price fluctuations rather than holding a long-term bullish position, implying a potential for additional sell-offs in the future.

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2024-06-11 15:11