Ark Bets on Coinbase
Cathie Wood's Ark Invest buys Coinbase, sells Robinhood stock amid strategic shifts
Anonymous
Key Points
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At the time of the trades, Coinbase closed at $164.92 (down 2.57% on the day) and its one-month decline extended to 12.95%; Block closed at $72.84 (down 2.46%), while Robinhood rose 8.78% to $105.20.
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Coinbase’s broader push includes concrete offerings beyond trading: Benchmarked as part of an expansion for developers, institutions, and DeFi participants, with Base (its Layer 2 network) “gained traction” as a decentralized-app building platform, alongside staking services and custody solutions.
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Ark’s rebalancing came as Robinhood announced operational changes: the company said it would cut 10% of its full-time workforce as it shifts to a leaner, “high performance” operating model.
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The reported valuation and insider-selling backdrop was quantified: Coinbase’s P/E was described as 62 (a premium), and insider activity showed $7.7 million in shares sold over the past three months.
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Ark’s disclosures also showed relative position sizes inside its flagship ARK Innovation ETF (ARKK): after selling, Robinhood remained ARKK’s fourth-largest holding at 4.87% (about $339.6 million), while Coinbase was listed as the eighth-largest position at 3.71% (about $258.6 million).
Cathie Wood's Ark Invest bought 111,799 shares of Coinbase on June 17 across three of its ETFs, spending roughly $18.4 million, according to Grafa. The purchase came on a rough day for the stock — Coinbase closed at $164.92, down 2.57%, and has fallen nearly 13% over the past month.
In the same rebalancing, Ark also bought about $17.2 million of Block shares and sold nearly $29 million worth of Robinhood stock, even as Robinhood surged 8.78% that day to close at $105.20. The trades signal a clear bet: Ark prefers Coinbase's push into financial infrastructure over Robinhood's retail trading model, CoinLaw reported.
Ark Buys Coinbase Dip, Dumps Surging Robinhood
Ark spread its Coinbase purchase across ARKK, ARKW, and ARKF — its three flagship ETFs. After the trades, Coinbase became the eighth-largest position in ARKK at 3.71%, worth about $258.6 million, according to Moneycheck. Robinhood, despite the selling, remained ARKK's fourth-largest holding at 4.87%, worth around $339.6 million.
The sell-off of 275,572 Robinhood shares came on the same day the company announced it would cut 10% of its full-time workforce — about 290 employees. CEO Vlad Tenev said the firm "cannot default to operating as a heavily-layered organization," even while insisting "Robinhood's business has never been stronger." Ark appears to view Robinhood's current $105 price as already pricing in the good news.
Coinbase Rolls Out AI Tools and Tokenized Stocks
Ark's purchase followed a major product push from Coinbase. On June 16, Coinbase launched "Coinbase Advisor," an SEC-registered AI-powered investment tool for its Coinbase One members, PYMNTS reported. The next day, it rolled out "Coinbase for Agents" — a system letting AI software trade directly on-chain with instant settlement.
Coinbase also introduced tokenized stocks for non-U.S. users and a unified liquidity system linking its U.S. and international platforms. Benchmark analyst Mark Palmer reiterated a Buy rating, framing the moves as Coinbase becoming an "on-chain financial infrastructure provider" rather than just a crypto exchange, CoinCentral noted. CEO Brian Armstrong said the goal is to reach "4 billion unbrokered people" through agentic trading on crypto rails.
Valuation Concerns and Insider Selling Cloud the Picture
Not everyone shares Ark's confidence. Coinbase trades at a price-to-earnings ratio of 62 — a steep premium that requires strong growth to justify, according to CoinCentral. The stock sits 62% below its 52-week high of $444.64. Baird cut its price target to $142, and Monness issued a Sell rating with a $115 target, arguing that new products don't yet offset slower crypto trading volumes.
Insider selling adds another wrinkle. Coinbase insiders sold $7.7 million in shares over the past three months. Robinhood co-founder Baiju Bhatt separately sold $5.19 million worth of HOOD shares on June 11, at prices between $86.54 and $93.21 — well below where the stock closed on trade day, Crypto Economy reported.
The Bigger Bet: Crypto Rails for an AI-Driven Economy
Ark's trade reflects a broader thesis. Traditional retail brokers like Robinhood are built for human traders. Coinbase is now building for AI agents — software that needs 24/7, instant settlement on crypto rails. Its Layer 2 network, Base, has gained traction as a platform for decentralized app developers, alongside staking and custody services for institutions.
Cantor Fitzgerald reiterated an Overweight rating and a $250 price target on Coinbase, saying the "innovation engine has not slowed," CoinCentral reported. For Ark, the 13% price drop was not a warning — it was an entry point into what it sees as the backend of the future financial internet.
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