ARK Invest Sells Coinbase Shares as Bitcoin Surges and BlackRock Receives Bitcoin ETF Seed Capital
Summary:
Cathie Wood's ARK Invest recently unloaded 237,572 Coinbase shares, netting at least $33 million. In the meantime, Bitcoin’s price surged to $44,000 on December 5. In addition, BlackRock received $100,000 from an unidentified investor as seed funding for its spot Bitcoin ETF. The heightened activity correlates with a considerable uptick in Bitcoin futures open interest on the Chicago Mercantile Exchange.
ARK invest, headed by Cathie Wood, has sold 237,572 shares of Coinbase from its three funds and garnered a minimum of $33 million. Bitcoin's price has escalated, reaching $44,000 on December 5. Simultaneously, BlackRock’s reported filings indicate that it had accepted $100,000 in startup capital from an unidentified investor for its Bitcoin ETF.
ARK Invest unloaded 237,572 shares of Coinbase, raking in a minimum of $33 million, considering that the closing stock price per share was $140 for Coinbase. From three of its funds, around 201,711 Coinbase shares were released by ARK Innovation ETF, while ARK Fintech Innovation ETF and ARK Next Generation Internet ETF sold 28,535 and 7,326 shares respectively. The recent sale of Coinbase shares by ARK follows a large daily sales trend in 2023, coming third to the 478,356 and 248,838 shares sales on July 14 and July 17 respectively. The shares price then was around $105.
The opening interest in Bitcoin futures has reached an almost all-time high at $5.2 billion on the Chicago Mercantile Exchange (CME), falling short by only $200 million from October 2021's peak. The rise in futures open interest from $3.63 billion to $5.20 billion aligns with Bitcoin's 26% increase over the past month, now trading slightly below $44,000.
The hike in Bitcoin futures open interest from $1.46 billion to $5.45 billion between October 1st and 21st, 2021 marked a significant price surge from $45,000 to $66,000 on Bitcoin. While Tony Sycamore, an IG Australia analyst, views this as an indication of renewed Bitcoin interest, he notes that the positioning of CME traders remains undetermined until December 12th when the CME report will be released.
Bitcoin's price exceeded $44,000 on December 5, largely due to the expectation that SEC will endorse a spot exchange-traded fund (ETF) in the current halving cycle of Bitcoin, making it reach a 19-month peak. Over the last week, Bitcoin's price has risen about 15%.
The bullish optimism is fueled further by anticipation that the Federal Reserve will stop raising rates amidst declining inflation and a weakening labor market. The final policy meeting for 2023 by the Fed, scheduled for December 12-13, is projected to maintain unchanged rates, as suggested by CME Group’s FedWatch Tool.
Furthermore, $100,000 in startup funds for its Bitcoin ETF was collected by BlackRock, the largest asset manager worldwide, from an unnamed investor in October 2023 according to SEC filings. The filings indicate that BlackRock plans to cover the sponsor's fee by borrowing Bitcoin or cash on a short-term basis, allowing them to "charge their fees" via a loan and therefore avoid causing any undue influence on Bitcoin’s price.
It is advised that potential investors conduct independent due diligence as investment and trading involves inherent risk. This report does not offer individualized investment advice or recommendations.
Published At
12/6/2023 4:00:10 PM
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