Cathie Wood Sells Bitcoin ETF, Makes Contrarian Bet on Robinhood...A Bearish Signal?

▲ Cathie Wood/AI generated image

Ark Invest CEO Cathie Wood made a large purchase of Robinhood shares, which had plummeted due to poor earnings. At the same time, she optimized her portfolio by adjusting the proportion of her Bitcoin (BTC) spot ETF holdings.

According to crypto media outlet BeInCrypto on April 30 (local time), Ark Invest purchased approximately $39.4 million worth of Robinhood Markets (HOOD) shares on April 29. Simultaneously, it sold approximately $6.1 million worth of ARK 21Shares Bitcoin ETF (ARKB) managed by the firm. This transaction was executed across three major funds: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF).

Wood's move comes shortly after Robinhood announced a 47% year-over-year decline in its Q1 crypto-related revenue. Robinhood's total Q1 revenue was $1.07 billion, falling short of market expectations of $1.17 billion. However, total net income increased by 3% to $346 million. As Robinhood's stock price declined after the earnings announcement, Wood saw this as an opportunity to increase her stake, adding 553,892 HOOD to her portfolio.

On the selling side, 243,147 ARKB were disposed of from the ARKW and ARKF funds, slightly reducing direct exposure to Bitcoin. On April 29 alone, ARKB saw a net outflow of $30 million. This aligns with the $137.8 million in outflows from the entire U.S. Bitcoin spot ETF market, including BlackRock's IBIT. Experts evaluate this sale as an asset reallocation strategy between crypto-related stocks and underlying assets, rather than a negative outlook on Bitcoin.

Wood maintains a long-term price target of $1 million for Bitcoin but has not made specific comments regarding this transaction. Robinhood is currently among the top 6 holdings within the three core funds managed by Ark Invest. Wood has previously shown long-term confidence by making additional purchases whenever Robinhood's stock price underwent significant corrections, including in early 2026.

The market is watching closely whether Ark Invest will continue to accumulate Robinhood shares during the stock's stagnant period following the earnings announcement. With continued outflows from Bitcoin spot ETFs, Ark Invest's asset management results, pivoting to crypto-based stocks, are expected to become a benchmark for investors in the future.

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