Popular crypto-friendly investment firm ARK Invest has significantly increased its stakes in the commission-free investing app Robinhood.
According to a November 8 investment sheet posted online, the investment firm secured 1,141,046 units of Robinhood shares, amounting to a substantial $9.5 million investment within a 24-hour window.
— amit (@amitisinvesting) November 9, 2023
The purchase was distributed unevenly across its three popular innovation exchange-traded funds (ETFs), which include ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF).
Among these innovation portfolios, ARKK acquired the majority of Robinhood shares, with 888,500 units, accounting for 78% of the stock total.
ARKW secured the next highest amount with 152,849 shares, while ARKF received 99,697 shares.
ARK Invest, managed by pro-crypto advocate and investor Cathie Wood, has been paying close attention to the Robinhood platform in recent months.
The tech investment company purchased 197,285 Robinhood shares through its ARKW funds on October 23. Prior to that, it bought a sizable 259,628 shares in the retail-friendly investment platform.
Wood’s growing investment portfolio within the Robinhood platform follows a 15% drop in the company’s shares in the last 24 hours.
This saw Robinhood dropping to $8.39 at the time of writing. The investment app’s bearish decline followed a massive decline in its customer base in the past year.
According to a post on X (formerly Twitter), Robinhood’s monthly active users fell 16% year-over-year (YoY) to 10.3 million in the third quarter of 2023.
Robinhood stock $HOOD is down 14% today after earnings came out.
Monthly active users fell 16% YoY to 10.3 million in the third quarter.
Revenue was hurt by a 13% decline in third-quarter transaction revenue tied to stock trading. Crypto trading dropped 55% year-over-year.… pic.twitter.com/o3hch0OepR
— Stas Serfes (@StasTalksStocks) November 8, 2023
Moreso, the stock and crypto trading app’s revenue also took a massive hit, dipping 13% in third-quarter transaction revenue in its stocks division.
On the other side of the platform, crypto trading dropped 55% YoY, painting a dreary picture for the Robinhood ecosystem.
Overall, the Robinhood service suffered an 11% decline in transaction-based revenue.
ARK Set to Launch Five Crypto Products – GBTC in Cross-fire?
ARK Invest has been increasing its Robinhood shares holdings while reducing its investments in other assets. One notable instance is the sale of a significant portion of Grayscale’s GBTC fund.
According to an image shared on X (formerly Twitter), ARK Invest sold off 48,477 worth $1.4 million of the Grayscale Bitcoin Investment Trust (GBTC) fund on November 8.
Prior to this, it liquidated 139,506 GBTC shares, worth roughly $4 million on November 6.
While observers may be curious about the motivations behind these moves, ARK Invest is gearing up to launch its in-house cryptocurrency-based products.
In an official announcement on its X handle, the firm has partnered with exchange-traded product (ETP) provider 21Shares to introduce a Digital Asset ETF Suite.
According to the joint statement released by both investment firms, the new service will comprise five ETF products and launch on November 16.
In addition, it will be listed on the Chicago Board Options Exchange (CBOE) and will target high-net-worth investors.