ARK Invest Cashes in on Coinbase Shares as Stock Surges
ARK Invest, a major player in the Bitcoin exchange-traded fund (ETF) market, has made the decision to sell its shares in Coinbase as the price per share continues to rise. On March 21, ARK Invest sold a total of 199,526 Coinbase shares from its ETFs as the exchange’s stock climbed above $260. The investment firm, founded by Cathie Wood, divested 133,533 COIN shares from the ARK Innovation ETF (ARKK), amounting to roughly $35 million based on Coinbase’s closing price of $262 on March 21. Additionally, ARK sold 59,215 shares from the ARK Next Generation Internet ETF (ARKW) and 6,778 shares from the ARK Fintech Innovation ETF (ARKF), bringing the total sale to $52.3 million.
Coinbase Shares Continue to Rise
Coinbase’s stock has been experiencing steady growth, surpassing $270 for the first time since December 2021. On March 21, COIN briefly reached a high of $276. As of now, Coinbase shares have surged nearly 250% over the past six months and are up by more than 50% year-to-date (YTD). ARK’s recent sale of Coinbase shares marks one of the most significant sell-offs in 2024. The previous notable sale occurred on March 11 when the firm sold 270,365 Coinbase shares. On February 16, ARK executed its largest Coinbase sale of the year so far, divesting 499,149 COIN shares across its three ETFs.
ARK Trims Holdings in Square and Robinhood
In addition to selling its Coinbase shares, ARK has also been reducing its holdings in Square, a Bitcoin-focused fintech company co-founded by Twitter’s Jack Dorsey. On March 21, ARK sold an additional 188,519 Square shares from its ARKK fund, generating $15.8 million in proceeds. Furthermore, ARK unloaded 93,002 shares of Robinhood, valued at approximately $2 million, from the ARKW ETF. This decision was made to comply with Rule 12d3-1, as the fund’s HOOD holdings approached 5% of the portfolio’s total weight.
Cathie Wood’s Optimistic Outlook on Cryptocurrencies
Cathie Wood, the founder of ARK Invest and a prominent figure in the crypto space, has been known for her bullish stance on Bitcoin and other cryptocurrencies. She holds a highly optimistic long-term outlook on digital assets like Bitcoin, emphasizing their ability to thrive in market volatility and regulatory uncertainty. In 2020, Wood made headlines with her prediction that Bitcoin would hit $500,000 by 2030.
Hot Take: ARK Invest Sells Another $35 Million Worth of Coinbase Shares as Stock Gains Over 50% YTD
ARK Invest has decided to cash in on its Coinbase shares as the price per share climbs above $270. The investment firm sold a total of 199,526 Coinbase shares from its ETFs on March 21. This sale marks one of the most significant sell-offs in 2024 and comes as Coinbase’s stock continues to rise. Additionally, ARK has been trimming its holdings in Square and Robinhood to comply with regulatory requirements. Cathie Wood remains optimistic about the future of cryptocurrencies and has been a vocal supporter of Bitcoin.
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