Cathie Wood’s highly regarded flagship ETF, ARK Innovation (ARKK), has taken a surprising turn by increasing its stake in Tesla Inc. (TSLA). On Wednesday, they acquired 93,965 shares of Tesla, amounting to approximately $23.2 million based on the closing price of $247.14.
This purchase has elevated Tesla to the second-largest holding within the Innovation ETF, with a weight of 7.59%. However, it still falls short of Coinbase Global Inc.’s stock (COIN), which holds the top spot at 10.89%.
Remarkably, the ETF had previously been reducing its exposure to Tesla when the electric vehicle maker was its largest holding. In October, they sold 245,197 shares of Tesla, valued at roughly $63.3 million based on the respective closing prices.
Following this move, ARK Innovation experienced a 1.5% premarket rally on Thursday. The previous day, it had seen a decline of 4.1% after reaching its highest price since April 25, 2022.
For the year-to-date period through Wednesday, the ETF has surged an impressive 63.3%, successfully snapping a two-year losing streak that amounted to a total decline of 74.9%. In comparison, the S&P 500 index has achieved a 22.4% rally this year, after gaining 2.2% over the past two years.
Also read: Cathie Wood’s ARK Innovation is heading to a No. 1 finish for 2024, from ‘s.
In addition to the Tesla acquisition, the Innovation ETF made other notable trades on Wednesday. They sold 132,782 shares of Coinbase, worth approximately $21.5 million, and purchased 133,003 shares of Zoom Video Communications Inc. (ZM), equating to $9.3 million.
Meanwhile, Cathie Wood’s ARK Next Generation Internet ETF (ARKW) also joined in by acquiring 17,422 Tesla shares, 24,899 shares of Zoom Video, and 93,965 shares of Block Inc. (SQ). As part of this activity, they sold 16,998 Coinbase shares and 398,383 shares of Grayscale Bitcoin Trust (GBTC).
It’s worth noting that the last Tesla trade made by ARKW was a sale of 1,021 shares on October 6.
Additionally, the ARK Fintech Innovation ETF purchased 16,271 shares of Meta Platforms Inc. (META), amounting to $5.7 million.