ARK Invest Continues Coinbase Shares Sell-Off; Awaits SEC Decision on Spot Bitcoin ETF
Summary:
Cathie Wood’s ARK Invest offloaded an additional 133,823 shares of Coinbase on January 5th. These sales, along with previous reductions in December and January, amounted to an estimated $78 million in earnings for the firm. However, Coinbase remains a significant part of ARK's portfolio. Meanwhile, ARK and 21Shares await a decision from the SEC on their joint application for a spot Bitcoin ETF, with a decision expected by January 10th.
On January 5th, ARK Invest, led by Cathie Wood, further reduced its holdings in the cryptocurrency exchange Coinbase (COIN) by offloading an additional 133,823 shares. The stock opened at $152.67 and closed at $153.98 on the same day. On January 8th, the US-based asset management firm reported its Friday trades on social media, including the sale of 107,151 shares from its flagship ARK Innovation ETF (ARKK), 15,892 shares from the ARK Next Generation Internet ETF (ARKW), and 10,780 shares from the ARK Fintech Innovation ETF (ARKF).
ARK Invest's recent transaction involving Coinbase shares was valued at an estimated $20.6 million, considering the closing stock price of $153.98. The company also made a move to divest from its Stratasys Ltd. holdings, while investing in Palantir Technologies Inc. and Iridium Communications Inc. On January 3rd, ARK Invest sold 166,000 Coinbase shares, amounting to about $25 million. Before that, it had also sold off 237,000 shares on December 5th. ARK Invest's recent selling spree of Coinbase shares in December and January earned the firm approximately $78 million.
Despite the ongoing sales, ARK continues to hold a substantial number of Coinbase shares. Coinbase remains the largest holding in the ARKK ETF, accounting for 10.04% of the portfolio. It also represents the biggest position in the ARKW ETF at 10.37% and in the ARKF ETF at 13.41%.
On another note, ARK Invest, along with 13 other firms, awaits a decision from the US Securities and Exchange Commission (SEC) on the approval of the first spot Bitcoin ETF for US investors. ARK's Bitcoin ETF application, made jointly with 21Shares, a Swiss firm specializing in cryptocurrency exchange-traded products (ETPs), is among these submissions. ARK and 21Shares were the first to provide updates to their spot Bitcoin ETF application before the SEC's deadline on December 29th. By January 10th, the SEC is expected to make a decision on the approval of the ARK 21Shares Bitcoin ETF following its January 4th registration notice.
Published At
1/8/2024 1:10:54 PM
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