Ark Invest sells over $100M of Coinbase (COIN) shares 😱

Ark Invest Sells Over $100 Million Worth of Coinbase (COIN) Shares

If you’ve been following the recent movements in the crypto market, you may have noticed that Ark Invest, the investment management company led by Cathie Wood, has been actively selling off its holdings of Coinbase shares (COIN). In just a span of three days this week – Monday, Tuesday, and Wednesday – Ark Invest managed to sell over $100 million worth of COIN shares. This significant sale has caught the attention of many investors and analysts alike.

The Strategy Behind Ark Invest’s Sale of Coinbase (COIN) Shares

Ark Invest’s decision to sell off its COIN shares is part of a larger strategy that began in 2024. The company started unloading its holdings from various ETFs, including ARK Fintech Innovation ETF (ARKF), Ark Next Generation Internet ETF (ARKW), and Ark Innovation ETF (ARKK) starting from February 14th. Since then, the total sales have amounted to over $34 million worth of Coinbase stocks.

Ark Invest sold over $31 million worth of COIN shares on Monday
$24 million of COIN shares were sold on Tuesday
Almost $50 million worth of COIN shares were sold on Wednesday

Additionally, Ark Invest reportedly sold another 204,469 Coinbase shares, valued at $48.8 million, just yesterday. These recent sales add to the previous week’s transactions, bringing the total amount to 45 million COIN dollars.

The Impact on Coinbase Stock Price and Market Trends

As a result of Ark Invest’s massive sell-off of COIN shares, the price of Coinbase stock has seen some fluctuations. Currently priced at $238.55, COIN has experienced a significant increase of +192% compared to six months ago and +95% compared to last month. Despite these fluctuations, the overall trend for COIN remains bullish, with a recent 24-hour increase of +10%.

Ark Invest sold over 1.2 million COIN shares from June to October 2023
An additional 1.6 million COIN shares were sold from early December to early January
Following the approval of Bitcoin spot ETFs by the SEC, Ark Invest resumed selling 200,000 shares in a few days

The Challenges Faced by Coinbase During Market Surges

In late February, as Bitcoin prices surged to new highs, Coinbase encountered significant technical challenges leading to service interruptions for its users. The surge in demand for trading activities resulted in a crash that affected many users’ access to their accounts. CEO Brian Armstrong attributed this issue to an overwhelming wave of traffic but assured users that it was being addressed promptly.

Coinbase faced technical difficulties as BTC rose to $67,000 in early March
The platform struggled to handle increased user traffic and trading activity during peak times
Issues with memecoin Shiba Inu (SHIB) also impacted Coinbase users with sudden price drops compared to other exchanges like ByBit and Kraken

Hot Take: What Does This Mean for Crypto Investors?

As an investor in the crypto market, it’s essential to stay informed about significant movements like Ark Invest’s sell-off of Coinbase shares and the challenges faced by platforms like Coinbase during market surges. These events can impact prices and trading activities, highlighting the volatility and risks associated with digital assets. Keep a close eye on market trends and developments to make informed decisions about your investments in cryptocurrencies.