Cathie Wood’s ARK Invest made waves this week by restructuring three of its flagship ETFs, selling off significant holdings in Coinbase and Roblox shares to acquire a 1.5% stake in Bitmine Immersion Technologies, an Ethereum-focused treasury firm chaired by Fundstrat’s Tom Lee.
The move, detailed in a Monday trading update, reflects Wood’s growing confidence in Ethereum’s institutional adoption—even as Coinbase and Roblox shares remain top assets in ARK’s portfolios.
The $148 million shift: Coinbase and Roblox shares sold for ETH play
ARK’s Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) sold 218,986 Coinbase and Roblox shares worth $90.5 million and 463,293 Roblox shares valued at $57.7 million, respectively. The proceeds funded a $174 million purchase of 4.4 million Bitmine shares, now comprising 1.5% of each ETF.
“This rebalance aligns with our thesis that Ethereum’s institutional infrastructure is undervalued,” an ARK spokesperson told Cointelegraph. “Bitmine’s pivot from Bitcoin to ETH positions it uniquely.”
The sale of Coinbase and Roblox shares follows a broader trend: ARK also reduced positions in Robinhood and Block Inc., adding exposure to AMD, DoorDash, and Airbnb.
Cathie Wood’s ARK Invest ETFs picked up Bitmine shares across the board. Source: ARK Invest
Bitmine’s stock surged over 3,000% after announcing its Ethereum pivot in late June, peaking at $135 on July 3, according to Google Finance. Though it’s since corrected to $39.57, the stock remains up 400% year-to-date. Billionaire Peter Thiel amplified momentum last week with a 9.1% stake purchase.
“Ethereum’s staking yield and scalability upgrades make it a compelling treasury asset,” said Tom Lee in a July investor note. “Bitmine bridges traditional finance and decentralized finance.”
Despite the shift, Coinbase and Roblox shares still dominate ARK’s portfolios. COIN and RBLX are the second and third-largest holdings in ARKK, trailing only Tesla (9.7%).
Market reaction: Skepticism and optimism collide
Crypto analysts are split on ARK’s move. Some question the timing, given Bitmine’s volatility, while others see long-term potential.
“Dumping Coinbase and Roblox shares for a speculative ETH bet is risky,” warned Bloomberg Intelligence analyst Eric Balchunas. “But Wood’s bets on disruption often pay off.”
ARK’s fintech fund (ARKF) retains indirect ETH exposure via the 3IQ Ether Staking ETF (1.15% allocation), but the sale of 225,742 shares of ARK’s own Bitcoin ETF (ARKB) on July 16 underscores its Ethereum lean.
Olivia Jackson is a US-based cryptocurrency writer and market analyst with a passion for decoding the complexities of blockchain technology and digital assets. With over five years of experience covering the crypto space, she specializes in breaking down market trends, regulatory developments, and emerging Web3 innovations for both retail and institutional audiences.
Her work has appeared in leading finance and tech publications, including CoinDesk, Decrypt, and The Block, where she provides data-driven insights on Bitcoin, DeFi, and the evolving regulatory landscape. Olivia is particularly interested in the intersection of traditional finance and decentralized systems, often exploring how macroeconomic shifts impact crypto markets.