- December 22, 2023
- Posted by: [email protected]
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Ark Invest, a prominent participant in the ongoing application process for a spot Bitcoin exchange-traded fund (ETF) in the United States, has persistently divested its holdings of Coinbase stock, marking a notable trend with its recent substantial sale of shares totaling $24.2 million.
Cathie Wood’s Ark Invest executed the sale of an additional 149,780 Coinbase shares (COIN), amounting to $24.2 million, from two of its funds as the stock soared to new yearly highs, as disclosed in the company’s latest trade filing. The sale included 132,782 Coinbase shares ($21.5 million) from its Innovation ETF and 16,998 shares ($2.7 million) from its Next Generation Internet ETF. This move is part of Ark Invest’s strategic portfolio rebalancing in response to the recent surge in COIN’s price.
This divestment follows a $5.5 million sale of Coinbase shares earlier in the week, contributing to a cumulative total of over $200 million in Coinbase stock sold by Ark Invest in the past month. Despite reaching yearly highs, Coinbase shares closed at $161.86 on the day of the sale.
Over the past month, Coinbase shares have witnessed a remarkable 60% increase, and year-to-date, the surge stands at an impressive 344%. However, the stock remains over 50% below its all-time high of approximately $343, recorded in November 2021.
Ark Invest, under the leadership of Cathie Wood, has been consistently offloading Coinbase shares, with recent trade filings revealing approximately $59 million in sales the previous week. The investment management firm strategically leveraged the recent rally in Coinbase’s stock by selling 12,142 shares ($1.8 million) from its Innovation ETF, 2,278 shares ($337,000) from its Next Generation Internet ETF, and 4,542 shares ($672,000) from its Fintech Innovation ETF.
The trend continued throughout the week, with Ark Invest divesting $42.6 million worth of COIN on Wednesday, $11.5 million on Tuesday, and $1.9 million on Monday, accumulating a weekly total of $58.8 million in Coinbase shares sold. In the prior week, Ark Invest had also sold $100 million worth of Coinbase shares.
Additionally, Ark Invest executed significant sales of Grayscale Bitcoin Trust (GBTC) shares, marking its largest sale in over a year. The firm sold 809,441 GBTC shares worth $27.6 million from its Next Generation Internet (ARKW) ETF, contributing to a weekly total of $14.9 million in GBTC shares sold.
Amid the broader market dynamics, Ark Invest has continued to accumulate shares of Block, the financial payment processor co-founded by Twitter co-founder Jack Dorsey. On December 18, ARKW allocated another 347,692 Block shares worth $25.7 million, further solidifying Block’s position in ARKW’s portfolio.
This strategic move comes as Block’s stock inches closer to GBTC on the top four list, with a weight of 6.83% of ARKW’s total assets and a market value of $116.9 billion. Block shares closed at $76.11 at the market close. While Ark Invest actively sheds GBTC shares, the company is evidently bullish on Block, reinforcing its commitment to strategic portfolio adjustments in response to evolving market conditions.
