Ark Invest bought 41,032 Coinbase shares, worth $8.7 million, for its Next Generation Internet exchange-traded fund (ARKW) on Tuesday and offloaded $8.6 million worth of its own spot Bitcoin  BTC +1.17%

 ETF amid the broad crypto market sell-off.

It’s the first time Ark has bought Coinbase shares for its funds since acquiring $2.2 million worth of COIN on Oct. 8, ahead of pro-crypto Donald Trump's presidential election victory a month later. Coinbase stock subsequently doubled to a new all-time high of $343.62 in December, while bitcoin soared 76% from around $62,000 to a peak of over $109,000 on Inauguration Day.

However, both COIN and BTC have since witnessed significant declines, down approximately 38% and 19%, respectively, exacerbated by this week's crypto price plunge.

Ark’s investment strategy involves letting no individual holding take up more than 10% of a fund's portfolio. This is to maintain diversification within its funds — meaning Ark is likely to continue rebalancing its weightings if the value of Coinbase stock rises or falls significantly relative to Ark's other holdings in its funds.

According to the firm’s disclosures, COIN is currently the sixth-largest holding within its ARKW fund, with a weighting of 5.5%, worth around $94.4 million, as of Feb. 25. Coinbase is presently valued at $39.5 billion, according to The Block’s data dashboard.

Coinbase shares closed down 6.4% on Tuesday at $212.49, now losing over 17% year-to-date, according to The Block's Coinbase page. COIN is currently up 2% in pre-market trading on Wednesday, per TradingView.