Cathie Wood’s New Move: Major Investment in eToro on Its IPO Day while Adjusting ETF Portfolio
Cathie Wood made a remarkable move by significantly purchasing eToro shares on its IPO day, while simultaneously adjusting her ETF portfolio by liquidating part of her Bitcoin holdings and quietly increasing her stake in Solana products while withdrawing from Block shares.
eToro Surges 29% on IPO Day; Ark Invests Over $9 Million
Ark Invest’s Innovation Financial ETF (ARKF) made a significant purchase of 140,000 shares of eToro on Wednesday, totaling $9.4 million, coinciding with the cryptocurrency and stock trading platform’s official listing on Nasdaq. eToro, trading under the ticker “ETOR,” saw its IPO priced at $52 per share, and the stock surged 29% on its first day, closing at $67, indicating strong market demand from investors.
eToro originally filed for its IPO in March but had to pause the plan due to market fluctuations caused by former U.S. President Trump’s tariff policies. This year, with market sentiment stabilizing, several crypto-related companies, including Circle and Animoca Brands, are preparing to go public.
This is not the first time Ark has made a move on an IPO day; in April 2021, Ark purchased 750,000 shares of Coinbase on its listing day.
Ark Liquidates $7.9 Million in Bitcoin ETF Holdings to Maintain Portfolio Balance
Alongside its investment in eToro, Ark also liquidated a portion of its Bitcoin spot ETF (ARKB), worth $7.9 million, originating from ARKF and the Next Generation Internet Fund (ARKW). However, even with this liquidation, ARKB remains the largest holding in ARKW, constituting 9.5% of the fund, valued at approximately $165 million; in ARKF, it is the fourth-largest holding, accounting for 6.1% or about $62 million.
This adjustment aligns with Ark’s consistent investment philosophy—no single asset should exceed 10% of the overall ETF portfolio to ensure diversification and risk management.
eToro’s Weight in Ark is Currently Low, but Potential is Promising
According to the latest public data, ETOR ranks 33rd in ARKW’s weight, making up only 0.93%. In contrast, the top three holdings in ARKW are Shopify (9.9%), Coinbase (9.7%), and Robinhood (7.4%), with market values of $100 million, $94 million, and $74 million, respectively.
Although ETOR’s current weight is low, if the stock price continues to rise, Ark is expected to rebalance its position in the fund.
Ark Bets on Solana, Increasing Holdings in Canadian-listed Staking ETF
Notably, in addition to eToro, Ark also purchased the Solana Staking ETF issued by 3IQ and listed on the Toronto Stock Exchange, totaling $7.6 million, allocated between ARKF and ARKW, accounting for approximately 1% and 0.6%, with market values of $10.3 million and $10.6 million, respectively.
Currently, the U.S. Securities and Exchange Commission (SEC) has not approved any Solana ETFs; however, several companies, including Bitwise, 21Shares, Grayscale, and VanEck, have recently submitted applications. Ark’s move indicates its optimism regarding Solana’s future opportunities in the ETF market.
Liquidating Block Shares, Redirecting Funds to High-Growth Targets
Ark also sold approximately 14,930 shares of Block (formerly Square), a payment company owned by Jack Dorsey, valued at about $873,000. Block’s stock price rose 0.6% on the same day, closing at $58.50. This reduction in holdings demonstrates Ark’s ongoing efforts to optimize its portfolio by concentrating funds on new listings or higher-growth potential targets.
Risk Warning
Investing in cryptocurrencies involves a high degree of risk, and prices may fluctuate dramatically, resulting in the potential loss of all principal. Please assess the risks carefully.