Strategic Shift: ARK Invest’s $22M Coinbase Sale and Bullish Acquisition Reveal 2026 Crypto Portfolio Rebalancing

In a significant move that underscores the evolving dynamics of cryptocurrency investments, Cathie Wood’s ARK Invest executed a substantial portfolio rebalance on Friday, February 14, 2026, selling approximately $22.1 million worth of Coinbase Global Inc. shares while simultaneously acquiring a $10.7 million position in the digital asset platform Bullish. This transaction continues a notable selling streak for the prominent investment manager and highlights a strategic pivot within its innovation-focused exchange-traded funds (ETFs). The actions provide a clear window into how major institutional players are navigating the post-2025 crypto landscape, marked by regulatory developments and shifting market volumes.

ARK Invest’s Detailed Coinbase Divestment

ARK Invest’s latest trade disclosures reveal a precise and multi-faceted reduction in its Coinbase exposure. The firm executed sales across three of its flagship ETFs, demonstrating a coordinated strategy rather than an isolated fund decision. Specifically, ARK sold 92,737 COIN shares from the ARK Innovation ETF (ARKK), 32,790 shares from the ARK Next Generation Internet ETF (ARKW), and 8,945 shares from the ARK Fintech Innovation ETF (ARKF). Consequently, the combined transaction totaled 134,472 shares, valued at approximately $22.1 million based on prevailing market prices.

This sale follows a similar divestment of 119,236 Coinbase shares worth $17.4 million just one day prior, on Thursday, February 13. Notably, that transaction marked ARK’s first sale of Coinbase stock in 2026 and its first since August 2025, ending a period of accumulation. The back-to-back sales suggest a deliberate reassessment of the exchange’s position within ARK’s growth-oriented thesis. Interestingly, Coinbase stock defied the selling pressure on Friday, closing the session at about $165 after a robust 13% single-day gain. However, this rally occurs against a challenging year-to-date backdrop, with the stock still down 26% since the start of 2026, according to data from Google Finance.

The Context of Crypto Exchange Performance

The decision to reduce holdings aligns with broader industry headwinds facing centralized exchanges. ARK’s own quarterly reports have previously identified weakness in digital asset-linked companies, with Coinbase being a specific drag on fund performance. During the fourth quarter of 2025, centralized exchange trading volumes contracted by an estimated 9% quarter-on-quarter, partly attributed to market volatility following October’s liquidation event. In that period, Coinbase shares underperformed major cryptocurrencies, declining nearly 35% from October to year-end, while Bitcoin (BTC) and Ethereum (ETH) experienced less severe drawdowns. This performance disparity between the exchange stock and the underlying assets it facilitates may inform ARK’s portfolio calculus.

Concurrent Accumulation of Bullish Shares

While trimming its Coinbase position, ARK Invest aggressively added shares of Bullish, a digital asset trading platform. The firm purchased a total of 393,057 shares worth $10.7 million, distributing the buys across the same three ETFs. The allocation included 278,619 shares for ARKK, 70,655 for ARKW, and 43,783 for ARKF. Bullish shares ended the trading day near $27, reflecting a 10% increase. Despite this positive daily move, Bullish stock mirrors the sector’s struggles, down 27% year-to-date.

The company’s recent financials reveal the scale of the challenge. Bullish reported a net loss of $563.6 million, or $3.73 per diluted share, for Q4 2025. This result starkly reverses a profit of $158.5 million recorded in the same quarter a year earlier. ARK’s investment at this juncture suggests a long-term conviction in the platform’s technology or market position, potentially viewing the current valuation as an entry point despite near-term financial setbacks. The move represents a classic growth-investing maneuver: identifying potential during a period of market pessimism.

Broader Portfolio Rebalancing Beyond Crypto

ARK’s trading activity extended beyond digital asset companies, indicating a comprehensive portfolio review. The firm also added positions in Alphabet (Google’s parent company), Recursion Pharmaceuticals, and Tempus AI. Conversely, it reduced exposure to several other high-growth technology names, including Roku, The Trade Desk, and PagerDuty. This pattern suggests a rotation within the disruptive technology sector, possibly reallocating capital from companies facing specific competitive or macroeconomic pressures toward those with perceived stronger moats or growth runways. The simultaneous crypto and tech trades paint a picture of an active manager dynamically adjusting its risk profile.

Implications for ARK’s Innovation ETFs

The concentration of these trades in ARKK, ARKW, and ARKF underscores their importance to ARK’s core strategy. These funds are explicitly designed to capture disruptive innovation, and their holdings are intensely scrutinized by investors following Cathie Wood’s thesis. The recent underperformance of crypto-linked holdings has directly impacted these funds’ results. ARK’s latest quarterly commentary explicitly cited digital asset weakness as a primary performance drag. Therefore, the rebalancing acts as a direct response to recent headwinds, aiming to optimize the portfolio for future recovery and growth.

Furthermore, the shift from Coinbase to Bullish may reflect a nuanced view within the crypto ecosystem. While both are platforms facilitating digital asset transactions, their business models and market focuses differ. ARK’s research likely drives a view on which model is better positioned for the next phase of crypto adoption, which includes increasing institutional participation and evolving regulatory frameworks. This is not a simple exit from the crypto sector but a strategic reallocation within it.

Expert Perspective on Institutional Crypto Moves

Market analysts often interpret ARK’s public trades as signals for the broader growth investing community. The firm’s transparent daily disclosures provide a rare real-time look into the decision-making of a major thematic investor. The consecutive sales of Coinbase, breaking a months-long accumulation trend, prompt analysis on whether this indicates a peak in near-term optimism for the exchange’s stock or simply prudent profit-taking and risk management after a volatile period. The parallel purchase of Bullish, however, confirms that ARK’s conviction in the transformative potential of blockchain and digital asset infrastructure remains firmly intact.

Conclusion

Cathie Wood’s ARK Invest has executed a decisive portfolio rebalance, selling $22 million in Coinbase shares and buying $10.7 million in Bullish stock. This strategic shift highlights the active management approach of ARK’s innovation ETFs as they navigate the volatile cryptocurrency investment landscape of early 2026. The moves reflect a responsive strategy to recent sector underperformance and a continued belief in the digital asset ecosystem’s long-term potential, albeit with repositioned holdings. For investors, ARK’s transparent trading provides valuable insight into how a leading thematic investment firm is adjusting its exposure to crypto-related equities amid changing market conditions, regulatory scrutiny, and evolving competitive dynamics.

FAQs

Q1: How much Coinbase stock did ARK Invest sell?
ARK Invest sold a total of 134,472 Coinbase Global shares across three ETFs on February 14, 2026, worth approximately $22.1 million.

Q2: What other crypto stock did ARK buy during this rebalance?
Simultaneously, ARK Invest purchased 393,057 shares of the digital asset platform Bullish, worth about $10.7 million, distributing the buys across the ARKK, ARKW, and ARKF funds.

Q3: Why is ARK selling Coinbase shares?
While ARK does not publicly comment on daily trades, the sales follow a period where Coinbase stock was cited as a drag on fund performance. The move likely represents portfolio rebalancing, risk management, or a strategic reassessment amid broader crypto market volatility and declining centralized exchange volumes.

Q4: Does this mean ARK is losing faith in cryptocurrency?
No. The concurrent purchase of Bullish shares indicates ARK is reallocating capital within the crypto sector, not exiting it. The firm maintains a strong belief in blockchain technology’s disruptive potential but is adjusting its specific equity exposures.

Q5: How have ARK’s ETFs performed recently?
ARK’s innovation ETFs, including ARKK, ARKW, and ARKF, faced headwinds in Q4 2025, with the firm citing weakness in digital asset-linked companies like Coinbase as a significant performance drag. The recent trades are part of an active strategy to address this underperformance.