ARK Invest Sells Coinbase, Robinhood, and Nvidia Stocks
ARK Invest, the asset management firm and Bitcoin exchange-traded fund (ETF) issuer led by Bitcoin advocate Cathie Wood, has recently made significant divestments from its holdings in Coinbase, Robinhood, and Nvidia stocks. The ARK Innovation ETF (ARKK) sold 35,509 Coinbase shares worth $6.89 million, while the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) sold a combined total of 444,853 Robinhood shares worth $6.94 million. Additionally, the ARK Genomic Revolution ETF (ARKG) sold 2,724 Nvidia shares worth $2.15 million.
Divestment of Coinbase Holdings
The selling of Coinbase shares by ARKK represents a continuation of its previous divestments from the company. In February, ARKK sold a total of $34.3 million worth of Coinbase shares across its different funds. Meanwhile, Coinbase’s stock price has been on an upward trajectory, surging 46% over the past month.
Potential Pathway for Bitcoin Price to Reach $2.3 Million
Ark Invest’s recent analysis suggests that an investor’s portfolio allocation of 0.5% to 4.8% in Bitcoin could yield the best returns over a five-year period. The firm also proposes that a global investment of just 1% from the $250 trillion investable assets into Bitcoin could push its price to $120,000. Furthermore, a more substantial allocation of 19.4% could potentially elevate the price to $2.3 million.
Bitcoin’s Performance and Resilience
The analysis by Ark Invest highlights Bitcoin’s significant price rebound in 2023, which saw a 155% increase. Several key events contributed to this performance, including record-breaking transaction volumes, Ripple’s legal victory over the SEC, and PayPal’s launch of a USD stablecoin. The report also emphasizes Bitcoin’s resilience, particularly in mitigating counterparty risk and its surge following the collapse of regional banks like Silicon Valley Bank.
Hot Take: Ark Invest’s Strategic Moves
Ark Invest’s recent divestments from Coinbase, Robinhood, and Nvidia stocks indicate a shift in the firm’s investment strategy. While Coinbase has experienced a notable surge in its stock price, ARKK has decided to sell its shares. This move raises questions about ARKK’s future outlook on Coinbase and its potential impact on the cryptocurrency market. Additionally, Ark Invest’s analysis on Bitcoin’s potential price pathway provides valuable insights for investors looking to capitalize on the digital asset’s growth.
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