Ark Invest Purchases $14M In Robinhood Shares, Increases ETF Holdings

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Ark Invest has made another significant move by acquiring $14.2 million worth of Robinhood (HOOD) Markets shares, securing 123,336 shares. This transaction, made on Tuesday, pushes the stock’s weight in Ark’s ARK Innovation ETF (ARKK) to 4.09%. The purchase comes shortly after Ark Invest bought $9 million worth of Robinhood shares last Friday. These acquisitions indicate Ark’s confidence in Robinhood’s potential for long-term growth.


Ark Invest Increases Exposure to Robinhood

This latest investment builds on Ark Invest’s previous purchases of Robinhood shares. As of today, the stock has become a major component of the ARK Innovation ETF. Ark’s strategy focuses on companies driving disruptive innovation, and Robinhood fits this mold with its growing user base and product range. The company’s customer base surged to 26.5 million in July, up significantly from the prior month.


Additionally, Robinhood has expanded its offerings, including the acquisition of Bitstamp and the launch of USDG, a regulated stablecoin. These moves align with the global rise in Bitcoin adoption and demonstrate Robinhood’s ability to stay ahead of the market trends. Ark Invest has closely monitored these developments, further justifying its continued support of Robinhood as a promising investment.


Ark Invest’s Broader Strategy with Robinhood and Other Investments

Ark Invest’s strategy revolves around backing companies poised for transformative growth. With Robinhood’s impressive crypto revenue surge, up 98% to $160 million, Ark sees potential in its ability to capitalize on cryptocurrency market trends. The firm’s investments are not limited to Robinhood alone; Ark also purchased 2.53 million shares of Bullish across its ETFs recently.

However, the recent purchase comes amid Robinhood’s ongoing scrutiny in the U.S. Florida’s attorney general is investigating the platform’s crypto division over claims that it misrepresented itself as the “least expensive way to purchase crypto.”


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