Cathie Wood’s ARK Invest has continued its selling spree involving Coinbase shares, offloading a notable $22 million worth across three of its exchange-traded funds (ETFs). This comes as the firm simultaneously increased its stake in the crypto platform Bullish, showcasing a significant shift in investment strategy.

In its latest transactions, ARK sold a total of 134,472 Coinbase shares, broken down into 92,737 shares from the ARK Innovation ETF (ARKK), 32,790 shares from the Next Generation Internet ETF (ARKW), and 8,945 shares from the Fintech Innovation ETF (ARKF). The sale is part of a broader trend where ARK has been reducing its exposure to Coinbase, a major player in the cryptocurrency exchange space.

Just a day prior, ARK had sold 119,236 Coinbase shares, amounting to approximately $17.4 million, marking its first sale of Coinbase stock in 2026. This recent activity indicates a continued reassessment of their investments in the crypto space, especially in light of Coinbase's fluctuating stock performance.

Despite the selling, Coinbase shares experienced a gain of about 13% during Friday’s trading session, closing at around $165. However, the year-to-date performance remains concerning, with the stock down 26%. This volatility highlights the challenges faced by cryptocurrency exchanges as they navigate a turbulent market.

On the flip side, ARK Invest has shown a bullish attitude towards Bullish, acquiring a total of 393,057 shares worth roughly $10.7 million. The breakdown of this acquisition includes 278,619 shares in ARKK, 70,655 shares in ARKW, and 43,783 shares in ARKF. Bullish shares also saw a slight increase, closing the day up about 10%, although they too have suffered a 27% decline year-to-date.

The investment in Bullish comes at a time when the digital asset platform is facing its own challenges, including a reported net loss of $563.6 million in the fourth quarter of 2025. This stark contrast to the previous year’s profit of $158.5 million underscores the volatility and risks associated with investing in the cryptocurrency sector.

ARK’s strategy appears to be a mix of caution and opportunity, as the firm also diversified its portfolio by adding shares in companies like Alphabet and Recursion Pharmaceuticals, while reducing its holdings in several high-growth tech firms such as Roku and The Trade Desk.

The ongoing volatility in digital asset markets has impacted ARK’s ETFs significantly. The fourth-quarter pullback in the market has been particularly detrimental, with ARK acknowledging that the decline in companies tied to digital assets, especially Coinbase, has weighed heavily on their flagship funds.

This trend of shifting investments reflects a broader sentiment within the investment community as they reassess the viability of cryptocurrency exchanges amidst fluctuating market conditions. Investors are keenly observing how major players like ARK adapt their strategies in response to these challenges.

As the crypto landscape continues to evolve, the moves made by ARK and other investment firms will be closely monitored. The balance between risk and opportunity remains a key theme in the ongoing narrative surrounding cryptocurrency investments, setting the stage for what could be a transformative year ahead.