Cathie Wood’s Surprising Move: ARK Unloads 237K Coinbase Shares at $140 – What’s the Strategy Behind It?

ARK Invest Rakes in Profits from Coinbase Stock

ARK Invest, a firm looking to launch a spot Bitcoin exchange-traded fund (ETF) next year, has recently sold a large number of Coinbase (COIN) shares, reaping significant profits. The sale occurred on December 5th, with ARK dumping as many as 237,572 Coinbase shares from its three funds.

The ARK Innovation ETF (ARKK) alone sold 201,711 COIN shares, while the ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) sold 28,535 COIN and 7,326 COIN, respectively. This resulted in a net gain of at least $33 million as the Coinbase stock closed at $140 per share.

Despite the recent sale, ARK Invest still holds a significant amount of COIN shares as one of its top assets. Coinbase remains the largest asset in the portfolio of the ARKF ETF, accounting for more than 13% of its net assets with a value of nearly $135 million as of December 5th. COIN also makes up 11.72% and 11.64% of the ARKW ETF and the ARKK ETF, respectively, being the biggest asset for both funds.

The sale of Coinbase shares by ARK is one of its largest daily sales of COIN in 2023, only surpassed by the massive 478,356 COIN sale on July 14th and the 248,838 COIN sale on July 17th. At the time of those sales, Coinbase stock was trading around $105.

Coinbase’s stock has been performing well, reaching new yearly highs in line with the bullish crypto market. Year-to-date, COIN shares have surged by 280%, according to data from TradingView. The stock recently hit a new record high above $147.4, a level not seen since April 2022. It is also up nearly 70% over the past 30 days.

In addition to selling Coinbase shares, ARK Invest has also sold 168,127 shares of Grayscale’s Bitcoin Investment Trust (GBTC). The sale of GBTC shares, which netted $5.9 million at the closing price of $35, began on October 23rd, 2023, when Bitcoin was heading towards $34,000.

Despite selling COIN and GBTC shares, ARK Invest has been actively buying other crypto-related stocks, such as Robinhood (HOOD). The firm has also continued to purchase shares of SoFi Technologies, even after the announcement of the termination of its crypto trading services.

Overall, ARK Invest’s sale of Coinbase shares has resulted in substantial profits, adding to the firm’s success in the crypto market. With plans to launch a Bitcoin ETF in the near future, ARK Invest is positioning itself as a major player in the cryptocurrency industry.

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