Ark Invest Buys Big into Robinhood Despite Weaker Earnings

Cathie Wood's Ark Invest made significant moves in the market on Wednesday, purchasing approximately $39.4 million worth of Robinhood Markets shares and selling $6.1 million worth of its own spot Bitcoin exchange-traded fund.

The purchases followed weaker-than-expected first-quarter earnings from Robinhood, which saw a 13.2% drop in stock price to $71.20. Despite the decline, Robinhood reported net income of $346 million, a 3% year-on-year increase, indicating profitability held even as trading activity dropped.

The shares were acquired across three Ark Invest ETFs: ARKK, ARKW, and ARKF. The HOOD stock now ranks as the sixth-largest holding in ARKK at a 4.3% weighting worth $275.3 million, fourth in ARKW at 4.6% worth $75.6 million, and sixth in ARKF at 4.4% worth $36.1 million.

Ark Invest also sold 243,147 shares of the Ark 21Shares Bitcoin ETF (ARKB) from its ARKW and ARKF funds, with a total net outflow of $30 million on Wednesday. Combined U.S. spot BTC ETFs logged $137.8 million in outflows that day, with BlackRock's IBIT leading at $54.7 million.