Cathie Wood’s asset management firm Ark Invest has recently sold a significant number of Coinbase shares, worth millions of dollars. This comes as the crypto community eagerly awaits the potential approval of a spot Bitcoin ETF, which could have implications for the market.
On January 2, Ark Invest sold a total of 26,743 Coinbase shares, amounting to over $4 million. This marks the third consecutive selloff this week for ARK Innovation exchange-traded fund (ETF) (ARKK).
In addition to this, on January 3, Ark Invest sold a further 166,183 Coinbase shares worth over $25.3 million. They also offloaded 3,360 Coinbase shares worth over $580K on January 2. These sales are part of Ark Invest’s strategy to reallocate funds into other investments.
It appears that Cathie Wood may have a bearish outlook on Bitcoin and crypto shares in the short term. This is likely due to the anticipation of the SEC approving spot Bitcoin ETFs, which she sees as a potential “sell the news” event.
Despite these developments, the price of Coinbase (COIN) saw a 2.21% increase and closed at $155.60 on Thursday. However, it is currently experiencing a 1.63% decline in pre-market trading.
Spot Bitcoin ETF Approval Imminent
Several issuers, including Ark 21Shares, Grayscale, and Fidelity, have submitted filings with the SEC for spot Bitcoin ETFs. These filings have cleared some uncertainty surrounding the potential rejection of such ETFs by the SEC.
The market has experienced significant liquidations due to speculation and rumors about spot Bitcoin ETF rejections. In fact, approximately $700 million has been liquidated, with $500 million being liquidated in just one hour.
Despite these challenges, Bloomberg ETF analysts Eric Balchunas and James Seyffart believe that the Bitcoin ETFs are likely to be approved next week. There have been rumors about a decision being made today, but it seems that the approval will come at a later date.
Cathie Wood’s Ark Invest continues to offload its holdings of Coinbase shares ahead of the potential approval of spot Bitcoin ETFs. This indicates a cautious approach towards Bitcoin and crypto shares in the short term. The market eagerly awaits the SEC’s decision on these ETFs, which could have significant implications for the industry. Despite this uncertainty, the price of Coinbase has seen some positive movement. With various issuers submitting filings for spot Bitcoin ETFs, it seems that approval is on the horizon. Bloomberg analysts believe that these ETFs are likely to be approved next week. As the deadline approaches, investors will closely monitor any developments in this space.
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