Cathie Woods Ark Invest Sells Millions in Coinbase Shares Amid Ripple Ruling Surge

Cathie Wood’s Ark Invest Sells More Coinbase Shares Amid Ripple Case Ruling

Cathie Wood’s Ark Invest has sold 248,838 additional shares of Coinbase as the stock continues to perform well following a favorable ruling in the Ripple case. Ark Innovation ETF (ARKK) sold 127,266 shares, Ark Next Generation Internet ETF (ARKW) offloaded 44,784 shares, and Ark Fintech Innovation ETF (ARKF) sold 76,788 shares, amounting to $26.3 million based on the closing price of $105.5 on Monday.

Key Points:

Ark Invest sold 248,838 shares of Coinbase
Ark Innovation ETF sold 127,266 shares
Ark Next Generation Internet ETF sold 44,784 shares
Ark Fintech Innovation ETF sold 76,788 shares
Sales were worth $26.3 million

This marks Ark’s third sale of Coinbase shares recently, despite previously building up its position. Ark CEO and CIO Cathie Wood stated that the sales were to take profits and reallocate capital to underperforming investments. Wood remains positive about Coinbase, especially after the court ruling favoring Ripple against the SEC.

The Ripple ruling, which declared XRP as a non-security when sold on the secondary market, but a security when sold to institutional investors, is favorable for Coinbase. This may impact the 13 tokens actively traded on Coinbase that the SEC has alleged are securities. The ruling has led to a significant surge in Coinbase’s price, and it is currently trading near its highest level in the past year. Additionally, Coinbase’s shares have rallied due to their partnership with BlackRock and Fidelity as surveillance-sharing partners for spot bitcoin ETF applicants.

Despite the sales, Ark Invest still holds the second-largest ownership stake in Coinbase, with over 6% ownership.

Hot Take

Ark Invest’s decision to sell some Coinbase shares while maintaining a significant ownership stake showcases their strategy of taking profits and reallocating capital. The positive court ruling in the Ripple case has undoubtedly benefited Coinbase, leading to increased stock performance. It will be interesting to see how Ark Invest’s reallocation of capital to underperforming investments plays out in the long run.