ARK Invest Capitalizes on Coinbase Profits Amid Crypto Market Surge

ARK Invest, a prominent player in the cryptocurrency investment landscape, remains at the forefront of financial moves as it capitalizes on the booming cryptocurrency market. The firm, with aspirations to launch a spot Bitcoin exchange-traded fund (ETF) next year, recently undertook a significant sale of Coinbase (COIN) stock, solidifying its position in the rapidly evolving digital assets space.

On December 5, ARK reportedly divested itself of a substantial portion of its Coinbase holdings, shedding a total of 237,572 Coinbase shares across its three funds. This strategic move unfolded on a day when Coinbase stock reached $140 per share, resulting in a substantial windfall of at least $33 Million for the investment firm.

The lion’s share of the Coinbase sale occurred within the ARK Innovation ETF (ARKK), with 201,711 COIN shares being offloaded. Additionally, the ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) contributed to the sale by selling 28,535 COIN and 7,326 COIN shares, respectively.

The decision to sell Coinbase shares comes as the cryptocurrency exchange’s stock continues its upward trajectory, marking new yearly highs and posting a staggering 280% year-to-date surge, according to data from TradingView. 

This bullish trend in COIN shares has been further fueled by the legal challenges faced by rival exchange Binance and its former CEO Changpeng Zhao, who pleaded guilty to money laundering and sanctions violations in the United States in November.

ARK’s recent Coinbase sale ranks among its largest daily COIN transactions in 2023, following closely behind the massive 478,356 COIN sale on July 14 and the 248,838 COIN sale on July 17. Both previous transactions occurred when Coinbase stock was trading around $105.

Despite the active reduction in its Coinbase holdings, ARK Invest maintains a substantial position in COIN shares as a top asset in its portfolio. As of December 5, Coinbase represents over 13% of the net assets of the ARKF ETF, with a valuation approaching $135 Million. Moreover, COIN constitutes 11.72% and 11.64% of the ARKW ETF and the ARKK ETF, respectively, solidifying its status as the largest asset in both funds.

While actively trimming its COIN exposure, ARK Invest has demonstrated a dynamic investment strategy by actively acquiring shares in other crypto-related stocks. Notably, the firm has engaged in buying shares of Robinhood (HOOD) and continued its investment in SoFi technologies, even amidst the announcement of the upcoming termination of crypto trading services by the latter.

As ARK Invest navigates the volatile crypto market, its strategic moves reflect an agile approach to capitalize on opportunities and adjust its portfolio in response to evolving market dynamics.

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.