Cathie Wood's Tuesday Double Dump: Ark Invest Trims Both Palantir And Bitcoin ETF Holdings

On Tuesday, Cathie Wood-led Ark Invest made some significant adjustments to its portfolio. The most notable of these was the sale of shares in Palantir Technologies Inc PLTR across multiple ETFs, coupled with a substantial sale of ARK 21Shares Bitcoin ETF ARKB.

The Palantir Trade

Ark Invest’s decision to offload Palantir shares may come as a surprise to many, given the company’s impressive 355% surge over the past 12 months. The investment firm continued to dump shares of the hot stock. On Tuesday, it offloaded 4,890 shares valued at $342,251 through ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF. Palantir stock ended the day sharply lower by 7.8% at $69.99.

Tuesday’s sale follows Ark’s disposal of shares worth roughly $15 million on Monday. Despite the sale, Wood remains a long-time supporter of tech disruptors. However, this move underscores growing concerns about Palantir's valuation, especially following Morgan Stanley’s recent downgrade to "underweight," setting a $60 price target on the stock.

The ARK 21Shares Bitcoin ETF Trade

On the same day, Ark Invest also made a significant sale of its Bitcoin BTC/USD ETF. The firm sold 18,239 ARK 21Shares Bitcoin ETF units from ARKW. On Tuesday ARKB ended the day 5.8% lower at $96.19. Bitcoin was seen trading 5.2% lower at $96,728.42 at the time of writing. Significantly lower than the psychologically important $100K mark.

This trade comes amidst a favorable environment for crypto gains. Former BitMEX CEO Arthur Hayes predicted Bitcoin’s price could peak in late March 2025 due to increased dollar liquidity. He highlighted liquidity injections from the Fed’s Reverse Repo Facility and Treasury’s General Account, cautioning the positive trend may reverse with debt ceiling pressures.

Other Key Trades:

• Ark Purchased shares of Gitlab. and Illumina.
• The firm loaded up on shares of Pacific Biosciences of California
• Ark sold shares of Archer Aviation, Cloudflare and Adaptive Biotechnologies.

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal