Cathie Wood-led Ark Invest has yet again slashed its holdings in Coinbase (COIN). The company sold 70,616 shares of Coinbase, totaling $15.1 million, spread across three of its exchange-traded funds on May 7th.

The move came despite the positive first-quarter earnings report from the exchange, which showed higher revenue than expected and a record high in institutional trading volume.

The investment firms decision involved selling 45,915 shares worth $9.8 million from its Innovation ETF (ARKK), 17,755 shares worth $3.8 million from its Next Generation Internet ETF (ARKW), and 6,946 worth $1.5 million from its Fintech Innovation ETF (ARKF), as per their recent trade filing.

Ark was also involved in the $20.4 million sale of COIN less than a month back.

This investment strategy seems to limit exposure to any single stock in its ETF portfolio to no more than 10%. Such an approach ensures a well-diversified portfolio.

Ark Invest had previously voiced its plans to continue rebalancing and selling off shares if Coinbases weighting surpasses this threshold compared to other investments.

Meanwhile, Coinbase reported total revenue of $1.64 billion, surpassing the Street consensus estimate of $1.34 billion.

Despite this strong performance, Ark Invest chose to offload shares, indicating a strategic move that might be influenced by various factors beyond Coinbases recent financial success.

Coinbase ranks as the third-largest holding in ARKK ETF, constituting 8.2% of the portfolio, trailing Tesla and Roku.

In ARKW, its the fourth-largest holding at 8.2%, after Arks Bitcoin ETF, Tesla, and Roku. Within ARKF, Coinbase leads as the top holding with a 10.4% weight.