ARK Invest recently capitalized on the soaring stock price of Coinbase, a cryptocurrency exchange, by selling 43,956 Coinbase shares from its ARK Fintech Innovation ETF on November 27th.
At the time of the sale, Coinbase shares were valued at $119.7 each, amounting to a transaction worth $5.3 million, as reported by TradingView.
This move came as Coinbase’s stock surged to an 18-month high, attributed in part to 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 on November 21, 2023.
Over the past year, Coinbase’s stock has witnessed an impressive 168% increase and has surged by over 220% since January 2023.
Despite these gains, it still remains approximately 70% lower than its all-time high of $319, reached in September 2021, a few months after its trading launch in April 2021.
ARK Invest has been strategically divesting its Coinbase holdings throughout 2023.
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In October, Cathie Wood’s investment firm sold 63,675 Coinbase shares from its ARK Next Generation Internet ETF (ARKW), totaling $5.1 million.
Additionally, in July 2023, when Coinbase was trading around $90 per share, ARK offloaded more than $103 million worth of Coinbase shares.
ARK has also been actively shedding shares of Grayscale Bitcoin Trust (GBTC). On November 24, ARKW sold 94,624 GBTC shares for approximately $3 million, following the sale of nearly 700,000 GBTC shares in the previous month.
Bloomberg’s ETF analyst, Eric Balchunas, clarified that these sales do not indicate a lack of bullish sentiment towards Bitcoin or preparation for ARK Invest’s upcoming spot Bitcoin ETF in partnership with 21Shares. Instead, ARK appears to be adjusting its portfolio to maintain desired weightings.
Simultaneously with the sale of Coinbase and GBTC shares, ARK has been adding positions in crypto-related stocks.
On November 27, ARKF acquired 252,421 shares of the crypto-friendly banking app SoFi. Year to date, ARK has purchased a total of 1.6 million SoFi shares, valued at $11 million at current prices.
Additionally, ARK invested $1.1 million in the stock of the crypto-friendly investment app Robinhood on November 8th, indicating continued interest in the cryptocurrency space.
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