Cathie Wood’s Ark Invest Sells Coinbase (COIN) Shares Ahead of Spot Bitcoin ETF Approval
Cathie Wood’s asset management firm, Ark Invest, has sold additional shares of Coinbase (COIN) as the spot Bitcoin ETF approval window opens in early January 2024. This suggests that Wood may be bearish on Bitcoin and crypto shares, anticipating a “sell the news” event when the SEC approves spot Bitcoin ETFs.
Ark Invest Offloads Coinbase Shares
On December 29, Ark Invest sold a total of 2,369 Coinbase shares worth over $425K. The sales were made by ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF).
While the recent selloff is relatively small, Ark Invest has sold millions of COIN shares in the past few months. Last week alone, they sold 343,261 Coinbase shares.
On December 27, ARK Next Generation Internet ETF also sold large amounts of COIN shares, as well as Grayscale Bitcoin Trust (GBTC) shares and Block Inc (SQ) shares. They also liquidated holdings in other stocks and invested in ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA) and ProShares Bitcoin Strategy ETF (BITO).
Price Performance and Market Reaction
Coinbase stock reached a 52-week high of $187.39 last week but closed at $173.92, down 6.68%. In December, COIN price rallied 40%, and it has seen a remarkable 450% increase in 2023.
This move by Ark Invest has attracted attention from traders who are reconsidering their trades based on the belief that Cathie Wood expects spot Bitcoin ETF approval to trigger a “sell the news” event.
Spot Bitcoin ETF Approval Process
The Ark Invest 21Shares Spot Bitcoin ETF (ARKB) is expected to receive approval on January 10, 2024, as it has submitted an updated S-1 filing to the SEC. While the window for spot Bitcoin approval opens on January 5, experts predict that the SEC will approve all spot Bitcoin ETF applications simultaneously.
Various issuers, including Ark 21Shares, BlackRock, Fidelity, Valkyrie, VanEck, Bitwise, Invesco and Galaxy, WisdomTree, and Franklin Templeton, have submitted updated S-1 filings disclosing authorized participants (APs) and fees.
Hot Take: Cathie Wood’s Bearish Stance on Bitcoin
Cathie Wood’s decision to sell more Coinbase shares ahead of the potential approval of spot Bitcoin ETFs suggests a bearish stance on Bitcoin and crypto shares. This move by Ark Invest has raised concerns among traders who are now questioning their own positions in light of the anticipated “sell the news” event. It remains to be seen how the market will react if the SEC does indeed approve spot Bitcoin ETFs in January.
By
By
By
By