Cathie Wood’s ARK Invest Sells $49.2M Coinbase: What’s Happening? 

ARK Invest, led by Cathie Wood, sold a lot of Coinbase shares—335,860 to be exact. This move, totaling $49.2 million, raised some eyebrows as it’s the biggest sale since July. As per the latest reports, the sale was due to ARK’s rule of capping individual stock exposure at 10%, as Coinbase’s surge pushed its share value beyond this limit.

This move sparked mixed reactions, with some seeing it as a smart strategy to manage risk and others questioning its timing and impact on ARK’s investment performance in the volatile crypto market.

It seems the crypto market is engaged in a strategic chess game, and the moves are anything but ordinary, especially under the guiding hand of Cathie Wood and ARK Invest.

Here’s a quick detail for you. 

Capitalizing on Coinbase’s Rise!

Interestingly, Coinbase wrapped up Friday’s trading at $146.62, marking a 7.7% increase for the day and an impressive 300% growth year-to-date, per TradingView. Despite this, it’s noteworthy that the stock is still 57% below its all-time high of $342.98 from November 2021 during the previous crypto market bull run. 

ARK’s Selloffs: What’s So Big?

If you recall, ARK has staged similar actions before. Previous occurrences in July and November saw massive selling of Coinbase equities, totaling millions. In July itself, they sold 480,000 shares valued at $50.5 million, making this latest sell-off one of their most significant moves in months. But keep in mind that ARK’s behavior does not indicate a lack of trust in Bitcoin—this is crucial to understanding the story adequately. On the contrary, they have been actively amassing crypto shares.

It is also noteworthy that ARK Invest manages its ETFs with a strategic approach to maintain specific weightings of individual holdings within their funds. The recent surge in COIN stock pushed its weightage well beyond the desired percentage in ARK’s Innovation, Next Generation, and Fintech Innovation ETFs. Coinbase holdings now represent more than 11% of ARKK and ARKW and over 13% of ARKF. Beyond Coinbase, ARK also divested 102,672 shares in the Grayscale Bitcoin Trust (GBTC), worth approximately $3.6 million, constituting 8.33% of ARKW’s portfolio. 

Meanwhile, Cathie’s recent moves may have left many bewildered. Understanding why she’s offloading Coinbase shares and GBTC, the two prospects seemingly thriving at present, becomes crucial. On Friday, ARK’s sales coincided with Bitcoin breaking above $44,000. Although Bitcoin experienced a 10% dip afterward, it’s up 1.6% over the past week and has seen a 165% increase year-to-date. Currently, Bitcoin is trading at around $42,350.

What do you think of ARK Invest’s recent sell-offs in the crypto space? Tell us your views. 

What do you think of ARK Invest’s recent sell-offs in the crypto space?