ARK Invest Capitalizes on Coinbase Surge, Offloads Shares Amid Cryptocurrency Market Shifts
Summary:
ARK Invest sold off 43,956 shares of Coinbase from their ARK Fintech Innovation ETF, netting $5.3 million as Coinbase share value soared. This follows the indictment of Binance and its former head for anti-money laundering law violations and sanction breaches. Despite this boost, Coinbase's shares remain 70% lower than their record high in 2021. ARK has been regularly selling Coinbase stocks throughout 2023. Additionally, ARK sold a significant amount of its Grayscale Bitcoin Trust stock but continues to invest in crypto-friendly entities like SoFi and Robinhood.
As the value of Coinbase stock soared, ARK Invest capitalized on the opportunity and sold off 43,956 shares of Coinbase from their ARK Fintech Innovation ETF, as confirmed by recent trade notifications. This netted them $5.3 million as each share was valued at $119.7 as per TradingView records. This comes in the wake of a significant boost in the value of Coinbase shares after its competitor, Binance, and its former head Changpeng Zhao faced indictment for violation of anti-money laundering laws and sanctions in the U.S on November 21, 2023.
TradingView data reveals a 168% rise in the value of Coinbase shares over the last year, escalating more than 220% since January 2023. However, despite this impressive growth, the share price remains 70% lower than the record high of $319 per share in September 2021, a few months subsequent to its launch in April 2021.
ARK Invest has steadily been unloading Coinbase shares throughout 2023. In October, Cathie Wood's investment entity released 63,675 shares from its ARK Next Generation Internet ETF, gathering $5.1 million. When the price was around $90 in July 2023, ARK sold over $103 million worth of Coinbase shares. Moreover, the company has been significantly offloading its Grayscale Bitcoin Trust stock, most recently selling 94,624 shares for approximately $3 million.
However, ETF analyst for Bloomberg, Eric Balchunas, emphasized ARK’s sales of GBTC should not be not interpreted as ARK losing its bullish stance on Bitcoin, or an attempt to accommodate their imminent spot Bitcoin ETF. As per his observations, ARK is merely regulating its investments to maintain desired weightings.
ARK, while offloading Coinbase and GBTC shares, has been simultaneously amassing shares of crypto-friendly entities, recently acquiring 252,421 shares of the fintech banking application SoFi. It has also gathered shares of Robinhood, acquiring $1.1 million worth of the stock on Nov. 8. Throughout the year, ARK accumulated a total of 1.6 million SoFi shares, currently worth $11 million.
Published At
11/28/2023 7:51:21 AM
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