Ark Invest Makes Significant Investment on eToro’s First Day of Trading, While Liquidating Its Own Bitcoin ETF Holdings
Cathie Wood’s Bold Move: Significant Investment in eToro on Its IPO Day
Cathie Wood has made another bold move, significantly investing in eToro on its IPO day while simultaneously adjusting her ETF portfolio by liquidating some Bitcoin holdings and quietly increasing her Solana positions while divesting from Block.
eToro Soars 29% on IPO Day as Ark Invest Enters with Over $9 Million
Ark Invest’s Innovation Financial ETF (ARKF) made a large purchase of 140,000 shares of eToro stock on Wednesday, totaling $9.4 million. This was also the day that the cryptocurrency and stock trading platform officially listed on the Nasdaq. Under the stock symbol “ETOR,” eToro saw its IPO priced at $52 per share, with the stock price soaring 29% on its first day to close at $67, reflecting strong market demand from investors.
eToro had originally filed for its IPO back in March, but the plan was temporarily halted due to market volatility triggered by former U.S. President Trump’s tariff policies. This year, with market sentiment stabilizing, several crypto-related companies, including Circle and Animoca Brands, are also gearing up for their own listings.
Ark’s First-Day IPO Purchase is Not New; Liquidation of Bitcoin ETF Positions to Maintain Portfolio Balance
This is not the first time Ark has acted on an IPO day; in April 2021, Ark purchased 750,000 shares of Coinbase on its listing day. Alongside the eToro investment, Ark also liquidated positions worth $7.9 million in its Bitcoin spot ETF (ARKB), originating from both ARKF and the Next Generation Internet Fund (ARKW). However, even after this liquidation, ARKB remains the largest holding in ARKW, accounting for 9.5% of its assets, valued at approximately $165 million; in ARKF, it is the fourth-largest holding, comprising 6.1%, valued at around $62 million.
This adjustment aligns with Ark’s consistent investment philosophy — no single asset should exceed 10% of the total ETF portfolio to ensure diversification and risk management.
eToro’s Initial Weight in Ark is Low, Yet Potential is Promising
According to the latest public data, ETOR currently ranks 33rd in ARKW by weight, making up only 0.93%. In contrast, the top three holdings in ARKW are Shopify (9.9%), Coinbase (9.7%), and Robinhood (7.4%), with market capitalizations of $100 million, $94 million, and $74 million, respectively. Despite ETOR’s current small proportion, if the stock price continues to rise, Ark is expected to rebalance its holdings in the fund.
Ark Bets on Solana, Increasing Holdings in Canadian Listed Staking ETF
Notably, in addition to eToro, Ark has also purchased a $7.6 million stake in the Solana Staking ETF issued by 3IQ, which is listed on the Toronto Stock Exchange, allocating it within ARKF and ARKW at approximately 1% and 0.6%, valued at around $10.3 million and $10.6 million, respectively. Currently, the U.S. Securities and Exchange Commission (SEC) has not yet approved any Solana ETFs, but several companies, including Bitwise, 21Shares, Grayscale, and VanEck, have recently submitted applications. Ark’s move indicates its optimism about Solana’s future opportunities in the ETF market.
Divesting from Block Shares, Redirecting Funds to High-Growth Targets
Ark also sold approximately 14,930 shares of Block (formerly Square), a payment company founded by Jack Dorsey, valued at about $873,000. Block’s stock price increased by 0.6% on that day, closing at $58.50. This divestment demonstrates Ark’s intention to further optimize its portfolio, concentrating funds on newly listed or higher-growth potential targets.
Risk Warning
Investing in cryptocurrencies involves high risk, and their prices can be highly volatile, potentially resulting in the loss of your entire principal. Please assess the risks carefully.
