Cathie Wood’s Ark Invest Liquidates Coinbase, GBTC, and Block Inc Shares
On December 27, Cathie Wood’s asset management firm Ark Invest sold a significant number of shares in Coinbase, Grayscale Bitcoin Trust (GBTC), and Block Inc. The sell-off comes as the prices of COIN and GBTC stocks continue to rise amid the crypto market rally and the anticipation of a spot Bitcoin ETF in January.
ARK Next Generation Internet ETF (ARKW) sold 148,885 Coinbase shares worth over $27.5 million, 2.25 million GBTC shares worth $81 million, and 231,102 Block Inc shares worth $18 million. ARKW also completely liquidated its holdings in GBTC, which was previously the top holding of the ETF.
The price of Coinbase stock reached a new 52-week high of $186.97 and closed at $185.24 with a 7.67% increase. GBTC closed 1.68% higher at $36.25, while Block Inc closed at $79.60 with a 1.82% increase.
Cathie Wood Invests in Ark 21Shares Bitcoin ETF and ProShares Bitcoin ETF
In contrast to the sell-off, ARKW purchased 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA). This move raised eyebrows as the market expects the approval of Ark 21 Shares Spot Bitcoin ETF (ARKB) in early January.
ARKW also bought 4.32 million shares of ProShares Bitcoin Strategy ETF (BITO). According to Bloomberg Intelligence analyst Eric Balchunas, this may be a temporary investment strategy for Ark Invest and other institutions who use highly liquid ETFs during transitions.
In addition to the sell-off, Cathie Wood’s Ark Invest funds liquidated significant holdings in various companies including AMD, Cloudflare, Shopify, Stratasys, Adyen, Veracyte, PagerDuty, Palantir Technologies, CrowdStrike, Teladoc, Twilio, Unity Software, Roblox, and UiPath.
Hot Take: Cathie Wood’s Shifting Investment Strategy Reflects Crypto Market Dynamics
Cathie Wood’s decision to sell off Coinbase and GBTC shares while investing in Bitcoin ETFs highlights the changing dynamics of the crypto market. As COIN and GBTC stocks continue to rise, Wood’s move reflects a cautious approach to managing her firm’s investments. The anticipation of a spot Bitcoin ETF approval further adds to the uncertainty in the market.
On the other hand, her investment in ARK 21Shares Bitcoin ETF and ProShares Bitcoin ETF indicates her confidence in the future of Bitcoin and its potential as an investment asset. This strategic shift aligns with Wood’s reputation as an influential figure in the world of disruptive technologies and her belief in the long-term growth of cryptocurrencies.
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