ARK Invest liquidates $9 million of Bitcoin ETF to purchase Coinbase shares

Yesterday, ARK Invest sold 8.6 million dollars of its spot Bitcoin ETF (ARKB) and purchased 8.7 million dollars of Coinbase (COIN) shares. Cathie Wood’s investment management company increases the records of spot BTC ETF outflows in the USA, due to the crypto market crash. 

ARK Invest sells almost $9 million of its Bitcoin ETF to purchase Coinbase shares

Yesterday, ARK Invest, the company of the investment Rock Star Cathie Wood, sold 98,060 shares of its own Bitcoin spot ETF (ARKB), valued at approximately 8.6 million dollars.

Also yesterday, ARK Invest reportedly purchased $8.7 million worth of Coinbase shares, COIN.

Specifically, ARK Invest added 41,032 COIN shares to its Next Generation Internet ETF (ARKW), while the cryptocurrency exchange stock fell by 6.5% to $212.49. 

This move to liquidate nearly 9 million dollars of its own Bitcoin spot ETF by ARK Invest adds to a series of outflows that are occurring during this period. 

In fact, it seems that in recent days, the US Bitcoin ETFs are recording unprecedented outflows, with over 930 million dollars withdrawn even in a single day. 

From what has emerged, it seems that the massive general outflow was led by the Grayscale Bitcoin Trust (GBTC), which recorded a net outflow of 492 million dollars in one day. 

At the moment, the assumptions suggest that many investors are liquidating their positions to balance their portfolios, or looking for other investment alternatives. 

ARK Invest and the purchase of Coinbase (COIN) shares

While the sector of spot Bitcoin ETFs in the USA is not in one of its best moments, ARK Invest seems to have bet on Coinbase.

The COIN stocks are worth $212 today and are experiencing a price dump of -6% compared to a day ago and -20% compared to 5 days ago. 

The purchase of COIN by ARK Invest could therefore be a short-term opportunity. In fact, at the end of January, COIN shares had exceeded $300. 

The current crash of COIN is undoubtedly associated with the general crash of the crypto market, with the price of BTC dropping today below $90,000. 

Not by chance, the global crypto Fear and Greed Index today is at a score of 21 of “extreme fear” or “panic”, even lower than yesterday’s 25 and, decidedly far, from the 49 of two days ago.

Bitcoin as a Sound Money asset

At the beginning of February, ARK Invest launched its annual research report “Big Ideas 2025: Unlocking Exponential Growth Through Disruptive Innovation”. 

In practice, the study addressed the topic of transformative technological innovations, considering them as guidelines for the next wave of global economic growth. 

Regarding Bitcoin, the report defined it as a Sound Money asset, with enormous advantages over traditional fiat currencies. Moreover, for Cathie Wood’s company, Bitcoin could tend to reduce its annual volatility, while still offering returns superior to the average of other asset classes. For ARK, Bitcoin remains the investment asset capable of combating inflation and serving as a safe haven.