ARK Invest Cashes in $52.3M from Coinbase Shares Amid Stock Surge
Summary:
ARK Invest, a leading Bitcoin exchange-traded fund issuer, has sold off a significant portion of its Coinbase shares, worth around $52.3 million, as the stock exceeded $270. This move follows a trend of ARK offloading shares, including those of Block and Robinhood, due to compliance and strategic reasons.
In the wake of Bitcoin (BTC) exchange-traded fund (ETF) spot issuer ARK Invest's stock climbing over $270, the firm is capitalizing on the opportunity to gain from its Coinbase holdings. A recent trading alert showed that on March 21, ARK offloaded 199,526 Coinbase (COIN) shares from its ETFs. It was noted by creators of the Investment firm, started by Cathie Wood, that the ARK Innovation ETF (ARKK) disposed of around $35 million worth of COIN shares, a total of 133,533 shares, considering the closing price of each share being $262 on March 21 according to TradingView data. Added to this, the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) parted with 59,215 and 6,778 shares respectively. With the closing price on March 21, the overall value of this combined sale was $52.3 million. During its period of steady growth, the Coinbase stock eclipsed the $270 mark for the first time since December 2021, peaking momentarily at $276 on March 21 highlighted TradingView. As a part of ARK's significant 2024 sales, the prior substantial COIN sale occurred on March 11 with ARK offloading 270,365 shares of Coinbase. ARK's most notable sale in 2024 was recorded on Feb. 16, the firm let go of 499,149 COIN shares across its three ETFs. The shares of Coinbase were being traded at a price that was 37% below the present value, roughly at $190. Coinbase shares' value skyrocketed by nearly 250% over the ultimate six months. Large amounts of COIN shares were purchased by the company when the stock went public in 2021. In related news, ARK is also unloading shares of Block (SQ), a Bitcoin-centric fintech venture initiated by Jack Dorsey, Twitter's (currently rebranded as X) co-founder. On the same day, ARK yielded $15.8 million from selling 188,519 Block shares from its ARKK fund. ARK also sold $2 million worth of Robinhood (HOOD) shares, a total of 93,002 shares from the ARKW ETF. The sale was a result of the weight of HOOD holdings in the fund nearing 5% of the portfolio's total worth, enforced by compliance with Rule 12d3-1. This rule restricts ETFs from holding more than 5% of the value of its complete assets connected to a registered investment advisor, broker, dealer, or underwriter. In adherence to Rule 12d3-1, Robinhood shares have routinely been sold by ARK. The firm also sold 583,563 HOOD shares on March 14 from the ARKK fund sans the mention of Rule 12d3-1 compliance.
Published At
3/22/2024 12:46:42 PM
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