🚀 Bitcoin Soars to New ATH as ARK Invest Dumps $8.7M in ETF Shares – Bullish or Bearish Signal?

Cathie Wood's ARK Invest just made waves—cashing out $8.7 million in Bitcoin ETF shares as BTC hits record highs. Smart profit-taking or premature exit? Wall Street analysts are already placing bets.

Timing the top? ARK’s move comes amid institutional FOMO, with BlackRock and Fidelity still doubling down. Meanwhile, crypto Twitter is split: 'Genius trade' vs. 'selling the rocket fuel.'

One thing’s clear—when the suits start flipping coins, someone’s getting left holding the bag. *Cough* 2021 vibes *cough*. Stay nimble, folks.

• ARK Invest sold 225,742 ARKB and 34,207 COIN shares amid a rally.
• Bitcoin ETF ARKB saw $6.2 million in net outflows while the market gained $403.1 million.
• Coinbase remains ARKW’s second-largest holding at $172.8 million in value.

ARK Invest, the investment firm managed by Cathie Wood, rebalanced crypto exposure after selling a large block of shares in two of the largest crypto holdings in the firm.

The company sold 225,742 shares of the ARK 21Shares Bitcoin ETF (ARKB) and 34,207 shares of Coinbase Global Inc. (COIN) from the ARK Next Generation Internet ETF (ARKW), as reported by trade records.

This followed notable crypto market milestones. Bitcoin had only reached a record high of over $123,000, and Coinbase stock had only reached a fresh record high of $398.50, only to correct.

The fact that these trades were made WOULD appear to suggest that ARK is capitalizing on recent gains as it rebalances the portfolio in anticipation of macro catalysts such as the release of the inflation reports.

Tesla and Robinhood Support Indirect Bitcoin Exposure

This latest sale is part of a larger rebalancing initiative that ARK has conducted during July. The company sold shares of COIN worth $95 million spread across three other ETFs, ARKK, ARKW, and ARKF, earlier in the month.

These transactions fit a trend of active fund management as regulatory landscape dynamics and the market situation evolve.

Despite the reductions, the ARK’s attention to the crypto sector can be understood through ARKB continuing to be the ARKW fund’s fourth-largest position at 7.2% weighting and worth approximately $157.2 million.

ARK also has indirect exposure to bitcoin through the large equity holdings of Tesla and Robinhood, as these keep crypto on their balance sheets.

Market Flow Disparity and Derivatives Liquidation Trends

What was striking was that even as ARK reduced the ARKB holdings, the broader market saw a rapid capital inflow into Bitcoin ETFs. Spot Bitcoin ETFs saw $403.1 million of net inflows on the same day, led by BlackRock’s IBIT.

ARKB, on the other hand, saw $6.2 million of net outflows, which was a contrarian strategic repositioning. At the same time, ethereum dominated the top of the derivatives market liquidations as the price increased, cancelling out short positions amounting to $152 million.

For perspective, Bitcoin only added short liquidations worth $34 million, indicating higher short positions against ETH during the rally.

ARK’s approach balances near-term exits and long-term conviction via the actively managed crypto-linked portfolios. COIN has gained over 48% in the past month as the crypto rally has driven increased trading volumes on the platform.

: This article is based on real-time market data and general technical observations. It does not constitute financial advice. Always conduct your own research before making investment decisions.