Ark's 10% fund cap split a $37.4 million Block buy across three ETFs

Cathie Wood’s Ark Invest bought 456,059 shares of Jack Dorsey’s Block Inc. on Monday. The stake is valued at about $37.4 million.

Block closed at $82.02, down 1.85%, according to a trading disclosure.

~$21 million August buy followed a 6.15% drop to $79

The buy was divided among three of Ark’s actively managed funds. They are the Ark Innovation ETF, the Ark Next Generation Internet ETF, and the Ark Blockchain & Fintech Innovation ETF, which trade under the symbols ARKK, ARKW, and ARKF, respectively.

Ark did not pool the purchase into one vehicle. Its disclosures cap any one holding at 10% of a fund, a limit intended to keep its portfolios diversified.

Ark has seen the name Block on tape repeatedly all year. In June, the firm bought 236,759 shares, or about $17.2 million worth, through ARKK.

A smaller deal made in July involved 19,029 shares through ARKW and ARKF at a close of $79.99, worth about $1.52 million.

Monday’s buy seems to be a housekeeping matter against Ark’s own rules. The firm’s ~$21 million Block purchase that month was routine rebalancing rather than a new bullish bet, Cryptopolitan reported in August.

… Continue reading the full article at the original source below.