Ark Invest Shifts Focus: Bets on eToro and Solana, Trims Bitcoin Exposure

Cathie Wood remains true to her reputation for consistently surprising the markets. Her investment firm, Ark Invest, made several notable decisions on Wednesday, May 14th.

While Ark Invest made a big splash at eToro’s Nasdaq debut, shares of its own Bitcoin ETF were simultaneously reduced. What’s behind these moves—and what does that mean for you as an investor?

Big bet on eToro and Solana – Bitcoin is reduced

With eToro ‘s IPO on Wednesday, Ark Invest immediately seized the opportunity, purchasing 140,000 shares worth $9.4 million for the Fintech Innovation ETF (ARKF). eToro got off to a strong start, closing its first day of trading up 29% at $67 per share. This puts eToro among the mid-sized positions in ARKF with a 0.93% stake.

At the same time, Ark Invest also bought $7.6 million worth of shares in 3IQ’s Canadian Solana Staking ETF, bringing the Solana ETF’s exposure to approximately 1% in ARKF and 0.6% in ARKW.

On the selling side, however, Ark sold $7.9 million of its own shares in the ARKB Bitcoin ETF. Despite the sale, ARKB remains the largest position in ARKW with a volume of $4.9 billion and one of the top holdings in the ARKF.

Diversification remains the primary goal of Ark Invest

Ark pursues a clear strategy: No single position should account for more than 10% of a fund. Through this active rebalancing, Ark ensures that risk remains spread across different sectors and companies. This also applies to Bitcoin – despite the sale, the ETF remains a heavyweight in the portfolio.

It is noteworthy that Ark has been active in several stock market debuts, such as Coinbase in 2021. eToro could therefore play a similar role in the Ark portfolio in the long term if the company successfully establishes itself in the market.

Conclusion: Ark Invest focuses on growth markets – stay flexible

For you, it’s once again clear: Cathie Wood and her team react quickly to new market opportunities, but consistently focus on diversification. With eToro and Solana, Ark is investing in two growth areas beyond Bitcoin – without completely abandoning Bitcoin.

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(Featured image by Tima Miroshnichenko via Pexels)

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