Ark Invest, led by prominent investor Cathie Wood, has sold off a substantial position in Robinhood Markets Inc. The investment firm divested 127,952 shares of the popular trading platform, valued at approximately $6.9 million.
The sale comes at a challenging time for Robinhood, which recently faced regulatory hurdles. The company was forced to abandon its plans to offer event contracts for Super Bowl LIX following opposition from the Commodity Futures Trading Commission (CFTC).
Despite the setback, Robinhood has been actively expanding its service offerings. The company has ventured into futures trading, including markets for Bitcoin, oil, and gold, as part of its strategy to broaden its user base and diversify revenue streams.
The stock sale was executed through Ark's flagship Innovation ETF (ARKK) on Wednesday, when Robinhood's shares closed 3.1% higher at $54.20.
This move by Wood's firm appears to be part of a larger portfolio rebalancing strategy. On the same day, Ark Invest made several other notable trades, including purchases in biotechnology companies like Crispr Therapeutics and 10X Genomics Inc.
The decision to reduce exposure to Robinhood comes as the financial technology sector faces increased scrutiny from regulators and growing competition in the digital trading space.