ARK Investment Management, led by Cathie Wood, sells off $31 million worth of Robinhood shares, while increasing its holdings in Roblox.

ARK Invest, the investment management firm established by Cathie Wood, a veteran investor, has begun selling off a significant amount of stock in the cryptocurrency-friendly broker-dealer Robinhood (HOOD). According to a trade notification seen by Cointelegraph, on March 25, ARK sold 1.6 million Robinhood shares from its three funds. Based on HOOD’s closing price of $19.08 on Monday, this amounts to $31.5 million. The largest portion of the sale, 1,247,181 shares, came from the ARK Innovation ETF (ARKK), valued at approximately $24 million. Additionally, ARK sold 275,933 and 128,137 HOOD shares from the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), respectively. This sale marks the largest one from ARK since it began actively accumulating HOOD stock last year. The decision to sell comes at a time when Robinhood has experienced significant success, with its price increasing by 36% over the past month. Previously, ARK sold smaller portions of Robinhood shares, primarily due to compliance with Rule 12d3-1, which limits funds from acquiring more than 5% of the value of their total assets in securities. Despite the sale, ARK’s ARKK still holds HOOD as its eighth-largest portfolio asset, accounting for 4.3% of its $8.2 billion assets under management. The top three assets in the portfolio are Coinbase (COIN), Tesla (TSLA), and Roku (ROKU). While selling off Robinhood shares, ARK has continued to purchase shares of the online game platform Roblox (RBLX). On March 25, ARK acquired 740,115 Roblox shares for its three funds, worth $27 million at Monday’s closing price. In addition to selling Robinhood, ARK has also continued to sell Coinbase shares, with 4,291 COIN sold on Monday, worth approximately $21 million as of Tuesday morning. Robinhood, founded in 2013, is a stock trading application that is friendly towards cryptocurrencies, allowing users to trade Bitcoin (BTC), Ether (ETH), as well as stocks, ETFs, options, and other assets. On March 20, 2024, Robinhood launched the Android version of its self-custodial wallet, the Robinhood Wallet app.