Ark Invest Sells $31 Million Worth of Coinbase Shares as Bitcoin Surges
Ark Invest, led by Cathie Wood, has made a significant move in the cryptocurrency market by selling nearly $31 million worth of Coinbase shares. The sale took place as Bitcoin approached a new all-time high, coming close to the $69,000 mark on March 4. Here are the key details:
- The investment manager sold 134,749 Coinbase shares across three of its exchange-traded funds (ETFs): ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF).
- The transaction was valued at $30.88 million.
Interestingly, following the sale, Coinbase shares experienced a significant increase. They rose by 11.4% to $229.15 during regular trading and gained an additional 3.8% in after-hours trading.
Rise in Coinbase Shares Linked to Bitcoin Surge
The surge in Coinbase shares can be attributed to the rise in Bitcoin prices. As Bitcoin reached the $67,000 mark, Coinbase experienced a significant outage due to increased traffic. Users reported seeing incorrect balances during this time.
Brian Armstrong, CEO of Coinbase, acknowledged that the traffic exceeded their expectations despite their preparations.
Ark Invest’s Reduction of Investment in Robinhood
In addition to selling Coinbase shares, Ark Invest also reduced its investment in Robinhood, another cryptocurrency trading platform. The sale involved 50,600 shares valued at $841,478 through ARKW and ARKF.
This decision comes after Robinhood’s fourth-quarter earnings exceeded expectations and marked a strong start to 2024. Analysts have praised Robinhood’s performance, noting its strong finish in 2023 and positive outlook for the future.
Furthermore, Ark Invest sold an additional 686,864 Robinhood shares from its ARKW and ARKF funds the previous week. These shares were valued at approximately $11.4 million. According to data from Yahoo Finance, Robinhood shares closed at $16.58 on March 1, showing a more than 12% increase for the week and a 50% rise over the past month.
On Feb. 29, Robinhood made an announcement regarding the integration of token swaps on the Layer 2 network Arbitrum for its self-custodial crypto wallet. This move expanded Robinhood’s existing support for Ethereum and Polygon-based swaps.
Increase in Meta Platforms Holdings
Amidst these transactions, Ark Invest took the opportunity to increase its holdings in Meta Platforms. The investment manager purchased 12,498 shares through ARKF, amounting to $6.23 million.
However, despite this acquisition, Meta Platforms shares closed 0.8% lower at $498.19 on Monday.
Strategic Adjustments to Investment Portfolio
The series of transactions by Ark Invest reflects the firm’s strategic adjustments to its investment portfolio in response to fluctuating market conditions.
🔥 Hot Take: Ark Invest’s Cryptocurrency Moves
Ark Invest’s recent moves in the cryptocurrency market have garnered attention and speculation. Here are some key takeaways:
- The sale of nearly $31 million worth of Coinbase shares during Bitcoin’s surge suggests that Ark Invest may be capitalizing on short-term gains.
- The reduction of investment in Robinhood raises questions about the firm’s long-term outlook for the platform.
- Increasing holdings in Meta Platforms demonstrates Ark Invest’s confidence in the company’s future prospects.
- Overall, these strategic adjustments highlight Ark Invest’s proactive approach to managing its investment portfolio amidst the volatility of the cryptocurrency market.
As always, it will be interesting to see how these decisions play out and whether Ark Invest’s moves prove to be profitable in the long run.
By
By
By
By