Ark Invest Reduces Stake in Coinbase
In an effort to rebalance its portfolio, Ark Invest, led by CEO Cathie Wood, has sold over $29 million worth of Coinbase (COIN) shares. Although Coinbase remains a significant asset in Ark’s portfolio, the move aligns with Ark’s target weighting policy.
Sale Details
On January 3 and 4, Ark Invest sold a total of 166,183 and 26,743 COIN shares respectively, valued at $25.3 million and $4.16 million. These recent sales are part of a series of offloading actions, as Ark’s ETFs aim to keep individual holdings below 10% of the fund’s total value.
SEC’s Impact on the Decision
The impending U.S. Securities and Exchange Commission (SEC) announcement on spot Bitcoin ETFs played a role in Ark Invest’s decision. With the SEC considering 13 proposed spot Bitcoin ETFs, Ark Invest is adjusting its portfolio accordingly. Meanwhile, Coinbase plans to expand its Bitcoin and Ethereum products to international and retail investors in the near future.
Ark Invest’s Other Crypto Moves
Besides the Coinbase shares, Ark Invest also liquidated its remaining holdings in Grayscale Bitcoin Trust (GBTC), worth $200 million, and reinvested about half of these funds in Bitcoin Futures ETF Bito.
Hot Take: Ark Invest Adaptively Manages Portfolio Amid Crypto Market Evolution
In a strategic move aligned with its target weighting policy, Ark Invest sold a significant portion of its Coinbase shares. This decision reflects the changing dynamics of the crypto market, including the SEC’s consideration of spot Bitcoin ETFs. As Ark Invest continues to adapt its portfolio, it remains a prominent player in the crypto investment space, leveraging its expertise and actively managing its holdings.
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