ARK Invest Continues to Sell Coinbase Shares as Stock Price Rises
ARK Invest, the company that applied for a Bitcoin exchange-traded fund (ETF), has sold 43,956 Coinbase shares from its ARK Fintech Innovation ETF. The sale was made when Coinbase stock reached $119.7 per share, totaling $5.3 million. This comes as Coinbase’s shares have surged to an 18-month high following Binance and its former CEO pleading guilty to money laundering and sanctions violations.
ARK’s History of Selling Coinbase Stocks
ARK has been consistently selling off its Coinbase stocks throughout 2023. In October, the investment firm offloaded 63,675 shares, and in July, it sold over $103 million worth of shares when the stock was trading around $90.
Selling GBTC Shares
In addition to selling Coinbase shares, ARK has also been actively selling Grayscale Bitcoin Trust (GBTC) stock. On November 24, the firm dumped 94,624 GBTC shares for roughly $3 million.
Reasons Behind ARK’s Sales
The sales of GBTC and Coinbase stocks by ARK do not indicate a lack of bullishness on Bitcoin. According to Bloomberg’s ETF analyst Eric Balchunas, ARK is likely selling winners and vice versa to maintain desired weightings in its portfolio.
ARK’s Crypto Investments
While selling off certain stocks, ARK has been acquiring shares of crypto-related companies. It recently acquired 252,421 shares of SoFi and has accumulated shares of Robinhood as well.
Hot Take: ARK Invest Continues to Optimize Its Portfolio
ARK Invest’s ongoing sales of Coinbase and GBTC shares indicate its strategy of optimizing its portfolio by selling winners and maintaining desired weightings. This approach allows ARK to make room for new investments while still remaining bullish on Bitcoin. By acquiring shares of crypto-friendly companies like SoFi and Robinhood, ARK demonstrates its continued interest in the crypto space and its potential for growth.
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