ARK Invest Cuts Coinbase Position and Adds Bullish Shares to Its Portfolio

ARK Invest Shifts From Coinbase to Bullish: A Portfolio Realignment Amid a Crypto‑Market Pullback

By [Your Name] – Crypto Markets Desk
Date: February 2026

Overview

ARK Invest, the investment firm led by Cathie Wood, disclosed a notable change in its holdings on Thursday. The manager sold roughly 119,000 shares of Coinbase (NASDAQ: COIN), valued at about $17 million, while simultaneously purchasing close to 720,000 shares of Bullish (NYSE: BLSH) for an equivalent dollar amount. The moves mark ARK’s first Coinbase divestiture since August 2025 and reflect a broader reallocation within its crypto‑focused ETFs.

Transaction Details

The Coinbase sale follows a minor purchase of 3,510 shares ($630 k) made two days earlier, indicating a short‑term reversal rather than a full exit. ARK still retains a sizable stake in Coinbase across its three flagship funds—ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF)—with a combined market value of roughly $312 million. The position accounts for 3.4%‑4.95% of each fund, depending on the vehicle.

Market Context

• Coinbase performance: The exchange’s shares have slipped about 37% year‑to‑date, and are down roughly 60% from the $381 opening price recorded when the stock debuted in April 2021. The recent dip coincided with Bitcoin’s slide below $70,000 and a brief dip into the $60,000 range.

• Bullish performance: Bullish, a digital‑asset platform that went public on the NYSE in August 2025, has seen its price tumble more than 60% since the IPO, closing near $24.9 per share on Thursday.

• Crypto sector sentiment: The broader market has been under pressure, with lower Bitcoin prices, tighter risk appetite among institutional investors, and increased regulatory scrutiny across jurisdictions.

Analysis

1. Risk Management amid Volatility
   ARK’s reduction in Coinbase exposure appears to be a defensive maneuver. Coinbase’s earnings are heavily tied to trading volumes and crypto price movements, both of which have been under pressure. By trimming the position, ARK lowers its exposure to a single crypto‑exchange whose profitability is currently uncertain.

2. Strategic Bet on Institutional Infrastructure
   Bullish positions itself as a platform serving institutional clients, offering custody, trading, and settlement services. Although the post‑IPO price correction is steep, ARK may view the current valuation as an entry point for a longer‑term play on the infrastructure side of the digital‑asset ecosystem. The firm was also among the largest buyers of Bullish’s IPO, suggesting confidence in the company’s growth trajectory.

3. Portfolio Balance Across Funds
   The retained Coinbase stake (about $312 million) still represents a meaningful allocation within ARK’s crypto‑themed ETFs. The move does not signal a full abandonment of the exchange but rather a rebalancing to keep fund weights aligned with the manager’s risk parameters and market outlook.

4. Potential Catalysts for Bullish
   If institutional demand for regulated crypto‑services expands—driven by clearer regulatory guidance and higher Bitcoin prices—Bullish could benefit from higher transaction volumes and fee income. ARK’s exposure may be timed to capture upside as the sector stabilizes.

Key Takeaways

• ARK sold $17 M of Coinbase shares and bought a comparable amount of Bullish stock, marking its first Coinbase divestiture in over a year.
• Coinbase remains a significant holding for ARK, with a combined $312 M value across three ETFs, representing roughly 4% of each fund.
• The trade reflects a shift toward institutional‑focused crypto infrastructure providers, a segment ARK sees as having longer‑term upside.
• Both Coinbase and Bullish are currently trading well below their recent highs; ARK’s actions suggest a selective reallocation rather than a pan‑market exit.
• Market volatility—especially Bitcoin’s drop below $70 k—has pressured crypto‑related equities, prompting managers like ARK to adjust exposure and re‑evaluate risk.

Outlook

If Bitcoin stabilizes above the $70,000 threshold and institutional interest in regulated crypto services gains momentum, both Coinbase and Bullish could see improved earnings. However, the near‑term environment remains uncertain, and ARK’s balanced approach—maintaining a core Coinbase position while increasing exposure to a platform tailored for institutions—highlights a nuanced view of the sector’s recovery path.

The information in this article is based on publicly available filings and market data. Readers should conduct independent research before making investment decisions.

Source: https://cointelegraph.com/news/cathie-wood-ark-coinbase-dump-17-million-bullish-buy?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound