A key move has been made by Ark Invest, under the leadership of Cathie Wood, as the company recently decided to sell 70,616 shares of Coinbase spread across its three exchange-traded funds. This strategic move is aimed at ensuring a diversified portfolio, keeping any single asset from constituting more than 10% of its total holdings. The sale, amounting to $15.1 million, took place on a recent Tuesday, following a sequence of earlier transactions involving Coinbase shares.

The shares from the Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) were involved in the $15.1 million sale. This adjustment comes in the wake of a prior $20.4 million sell-off on April 11 and a smaller divestment of $824,000 on April 15. Notably, Coinbase currently stands as the third-largest holding within the ARKK ETF and the fourth-largest within the ARKW, carrying considerable weightage in the ARKF ETF.

Ark Invest places high importance on maintaining diversity within its investment strategy, indicating a likelihood of adjusting weights based on Coinbase's stock price movements. Ark's Coinbase holdings in the ARKK fund are valued at $547 million, with COIN holdings in the ARKW and ARKF funds valued at $129 million and $105 million, respectively. The past year has seen significant upswings in the ARKK, ARKW, and ARKF funds, with returns reaching 24%, 55%, and 61% correspondingly.