ARK Invest Liquidates Major Chunk of Coinbase Holdings Worth $49.2M

by Nik Asti

Published: December 11, 2023 at 6:15 am Updated: December 11, 2023 at 6:15 am

by Victor Dey

Edited and fact-checked:
December 11, 2023 at 6:15 am

In Brief

Cathie Wood’s ARK Invest capitalizes on the recent surge in Coinbase shares, executing its largest sale since July.

ARK Invest Divests Major Coinbase Holdings Amidst Market Rally

Cathie Wood’s ARK Invest made a significant move by selling 335,860 shares of cryptocurrency exchange Coinbase (COIN) on Friday, marking its largest divestment since July.

This strategic sale was distributed across three of its exchange-traded funds (ETFs), with the majority stemming from the Innovation ETF (ARKK). At Coinbase’s closing price, the sale would have generated approximately $49.2 million.

Based in St. Petersburg, FL, ARK Invest has been following a consistent pattern of selling Coinbase stock in recent weeks. This trend coincides with the appreciation of the exchange’s shares, which have been climbing alongside Bitcoin’s rally. Friday’s sale outpaced the July transaction, where ARK sold 480,000 shares valued at $50.5 million at that time.

ARK Invest adheres to a targeted weighting strategy for its ETFs, ensuring that individual holdings maintain a balance between 2% and 10% of the fund’s total value.

ARK Invest Balances ETFs Holdings, Maintaining Target Weightings

The recent surge in COIN stock, reaching its highest since April 2022, resulted in its weighting in the three ETFs exceeding the 10% threshold. Despite the recent sales, COIN still represents a significant portion of ARK’s portfolio, accounting for over 11% of ARKK and the Next Generation ETF (ARKW), and more than 13% of the Fintech Innovation ETF (ARKF).

COIN’s closing price on Friday was $146.62, marking a 7.66% increase on the day. Alongside the Coinbase shares, ARK also sold 102,672 shares in the Grayscale Bitcoin Trust (GBTC), valued at around $3.6 million. GBTC currently constitutes 8.33% of ARKW, indicating ARK’s continued investment in cryptocurrency-related assets.

This series of sales by ARK Invest highlights its active management strategy, leveraging market trends and maintaining balanced exposure within its ETFs. The move also reflects the firm’s responsiveness to shifts in the cryptocurrency market and its impact on related stocks.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti