Cathie Wood’s ARK Make investments offloaded $49 million worth of Coinbase (COIN) shares on Friday, in step with the investment firm’s day-to-day change update electronic mail. The switch followed a $24 million sale earlier final week. The continuing selloff is probably going as a result of COIN’s stock rally as a substitute of a bearish stance, nonetheless, given the weighting insurance policies of ARK’s funds.

The 335,860 shares had been supplied sooner or later of three funds, which amounts to about $49 million at Friday’s $146.62 closing tag. The three funds had been ARK Innovation ETF (ARKK), ARK Next Generation Facts superhighway ETF (ARKW) and Ark Fintech Innovation ETF (ARKF). The majority (326,925 shares) came from ARKK.

Coinbase shares surged 60% in November as the crypto alternate got a enhance from the frequent market optimism spherical possible space bitcoin (BTC) ETF approvals. Coinbase also obtained after rival Binance agreed in slack November to pay greater than $4 billion to solve a prison investigation introduced by the U.S. Department of Justice.

Read more: Coinbase Shares Surge 60% in November Amid ETF Optimism, Binance Fallout

The rally has impacted Coinbase’s weighting in the ARK funds. ETFs in overall calculate the burden of every stock in step with its market worth as a proportion of the final market worth of the portfolio. A stock rally would raise a firm’s market asset worth within the portfolio and lengthen its weight.

In ARK ETF portfolios, the tip ten holdings in most cases yarn for 50% of the portfolio, whereas the utmost effect for every stock is in overall 10%. After the sizzling gross sales, Coinbase peaceable accounts for 11.1% of the ARKK fund, 11.89% of ARKW and 13.3% of ARKF.

Coinbase shares are down 6.5% to $137.05 on Monday amidst a broader crypto market pullback.