ARK Invest, a prominent player in the race to launch a Bitcoin exchange-traded fund (ETF) in 2024, is making substantial gains from its substantial holding of Coinbase stock.
On December 5th, ARK unloaded a significant portion of its Coinbase shares, totaling 237,572, across its three funds, as per a trade notification reported by Cointelegraph.
This move coincided with Coinbase’s stock closing at $140 per share, resulting in proceeds of at least $33 million.
The lion’s share of the Coinbase shares, precisely 201,711, were divested from the ARK Innovation ETF (ARKK).
The ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) also participated in the sale, disposing of 28,535 and 7,326 shares, respectively.
Coinbase, the cryptocurrency exchange, has witnessed its stock reach new annual highs, riding the bullish wave of the crypto market, with a remarkable 280% year-to-date surge, according to TradingView data.
This rally gained further momentum following the legal issues faced by rival exchange Binance and its former CEO Changpeng Zhao, who pleaded guilty to money laundering and sanctions violations in the United States in November.
On December 5th, Coinbase’s stock reached an all-time high of over $147.4, a level not seen since April 2022.
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Over the past 30 days, the stock has gained nearly 70%, according to TradingView.
ARK’s recent sale of Coinbase shares ranks as one of its most substantial daily sales in 2023, trailing only behind the massive 478,356 shares sold on July 14 and the 248,838 shares sold on July 17 when Coinbase was trading at approximately $105 per share.
In addition to its aggressive Coinbase selling, ARK has also divested 168,127 shares of Grayscale’s Bitcoin Trust (GBTC), which, at the closing price of $35, yielded $5.9 million, according to TradingView.
This selling of GBTC shares began on October 23, 2023, amid Bitcoin’s climb toward $34,000.
Despite the recent reduction in Coinbase holdings, ARK still retains a significant number of shares in the exchange.
Coinbase constitutes more than 13% of the net assets of the ARKF ETF, with a value of nearly $135 million as of December 5th.
Additionally, Coinbase accounts for 11.72% and 11.64% of the ARKW ETF and the ARKK ETF, respectively, making it the largest asset in both portfolios.
While ARK has been shedding Coinbase shares, it has concurrently been actively acquiring shares in other crypto-related companies, including Robinhood.
Moreover, the firm has persisted in purchasing shares of SoFi Technologies despite the announcement of the forthcoming termination of its crypto trading services.
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