ARK Invest increased its stake in Robinhood Markets, purchasing roughly $13 million in shares following the platform’s selection for a US government-backed savings initiative.
The buying was spread across ARK’s ETFs, with ARK Innovation ETF (ARKK) leading the purchases, alongside additional allocations from ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF).
The move comes after the US Treasury named Robinhood as brokerage and trustee for “Trump Accounts,” a tax-advantaged investment programme for children, which includes a $1,000 government contribution for eligible participants.
BNY Mellon will act as financial agent and help develop the platform’s app, while the Treasury retains operational control of the programme.
Robinhood shares closed at $69.65 before jumping more than 7.5% in after-hours trading to $74.92, reflecting investor optimism around the partnership and growth potential.
The purchase marks ARK’s first Robinhood buy in nearly a month and comes as the company navigates mixed financial performance, including declining crypto revenues and lower net income in its latest quarterly results.
Robinhood has also authorised a $1.5 billion share buyback programme, signalling confidence in its long-term outlook despite recent market volatility.