On Tuesday, Cathie Wood-led Ark Invest made some significant adjustments to its portfolio. The most notable of these was the sale of shares in Palantir Technologies Inc (NASDAQ:PLTR) across multiple ETFs, coupled with a substantial sale of ARK 21Shares Bitcoin ETF (BATS:ARKB).

Ark Invest’s decision to offload Palantir shares may come as a surprise to many, given the company’s impressive 355% surge over the past 12 months. The investment firm continued to dump shares of the hot stock. On Tuesday, it offloaded 4,890 shares valued at $342,251 through ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (NYSE:ARKW) and Ark Fintech Innovation ETF (NYSE:ARKF). Palantir stock ended the day sharply lower by 7.8% at $69.99.

Tuesday’s sale follows Ark’s disposal of shares worth roughly $15 million on Monday. Despite the sale, Wood remains a long-time supporter of tech disruptors. However, this move underscores growing concerns about Palantir's valuation, especially following Morgan Stanley’s recent downgrade to "underweight," setting a $60 price target on the stock.

This trade comes amidst a favorable environment for crypto gains. Former BitMEX CEO Arthur Hayes predicted Bitcoin’s price could peak in late March 2025 due to increased dollar liquidity. He highlighted liquidity injections from the Fed’s Reverse Repo Facility and Treasury’s General Account, cautioning the positive trend may reverse with debt ceiling pressures.