ARK Invest Sells $13.5 Million Worth of Coinbase Shares
ARK Invest, led by Cathie Wood, has sold an additional 80,118 shares of Coinbase, valued at $13.5 million, from its investment funds. This move comes as Coinbase’s stock continues to surge in December.
Divestment from Coinbase Reaches $210.5 Million
On December 21, ARK Invest sold 68,769 Coinbase shares worth $11.6 million from its Innovation ETF and 11,349 shares worth $1.9 million from its Next Generation Internet ETF. Combined with previous sales earlier this month, ARK Invest has divested approximately $210.5 million from Coinbase in December.
ARK’s Strategy to Maintain Individual Company Exposure
ARK Invest follows a strategy of capping individual company exposure at around 10% of its holdings. This aligns with their recent divestment from Coinbase and their aim to manage risk and diversify their portfolio.
Coinbase’s Stock Surge and Growth
Coinbase’s stock has been experiencing significant growth, reaching new yearly highs with a trading price of $168.03. It has seen a 3.8% increase for the day, a 53.8% rise over the past month, and an impressive 400% growth year-to-date. However, it is still below its all-time high from November 2021.
Grayscale BTC Trust Shares Sold
In addition to selling Coinbase shares, ARK Invest has also been reducing its holdings in the Grayscale Bitcoin Trust (GBTC). The firm sold over 809,441 GBTC shares worth approximately $27.6 million from its Next Generation Internet ETF on December 18.
Narrowing of GBTC’s Discount
ARK Invest’s recent sales of GBTC shares coincide with a narrowing of GBTC’s discount to net asset value. The discount has fallen from over 40% in June to around 7.6%.
Increased Investment in Block
While reducing exposure to Coinbase and GBTC, ARK Invest has been accumulating shares in Block. On December 18, the firm purchased 347,692 Block shares worth $25.7 million for its ARKW fund and 158,334 shares worth $12.1 million for its Next Generation Internet ETF.
Block’s Market Value
Block, co-founded by Jack Dorsey (formerly of Twitter), now represents 6.83% of ARKW’s total assets with a market value of $116.9 billion.
Hot Take: ARK Invest Adjusts Its Crypto Portfolio
ARK Invest continues to make adjustments to its crypto portfolio, selling Coinbase shares and reducing holdings in the Grayscale Bitcoin Trust while increasing investments in Block. This strategic move allows ARK Invest to manage risk and maintain diversification within its investment funds.
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