ARK Invest, led by Cathie Wood, sold 580,000 shares of Coinbase last week, amounting to approximately $149.85 million at the time of sale. The shares were sold from three of ARK Invest’s exchange-traded funds (ETFs): Innovation ETF, Next Generation Internet ETF, and Fintech Innovation ETF.
This sale marks a significant offloading by ARK Invest, as it is the largest since mid-February and the second-largest since July 2020.
Rebalancing Efforts by ARK Invest
ARK Invest regularly rebalances its ETFs to ensure that no individual holding exceeds 10% of a portfolio. As a result, it is expected that ARK Invest will continue to sell COIN shares since Coinbase still represents more than 10% of its ETFs’ weight.
Coinbase’s Performance and Market Surge
Coinbase’s shares have experienced significant growth, trading over 80% higher than in February. This surge is primarily driven by the overall market boom in cryptocurrencies, with Bitcoin reaching a new all-time high.
Hot Take: ARK Invest’s Sale and Coinbase’s Performance
ARK Invest’s decision to sell a substantial amount of Coinbase shares raises questions about the investment manager’s outlook on the cryptocurrency exchange. While it may be part of their regular rebalancing strategy, it could also indicate concerns or a shift in investment focus.
On the other hand, Coinbase’s impressive performance and the surge in its share price reflect the growing popularity and acceptance of cryptocurrencies. This success is largely attributed to Bitcoin’s remarkable rally and the increasing interest from institutional investors.
As the crypto market continues to evolve, it will be interesting to see how ARK Invest’s actions and Coinbase’s performance unfold in the coming months.
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