ARK Invest and the sale of Coinbase shares

The recent sale of shares of Coinbase by ARK Invest has brought the total amount for December to almost 200 million dollars. 

In addition, Cathie Wood’s investment company has proceeded to sell GBTC shares, thus increasing its stake in Block. Let’s see all the details below. 

ARK Invest’s December and record-breaking Coinbase stock sales 

As anticipated, investment company Cathie Wood’s ARK Invest has increased its sales of Coinbase (COIN) shares on Wednesday.

This has brought the total amount for December to 196.8 million dollars, thanks to an increase in value of almost 30% since the end of November.

The exchange-traded fund ARK Innovation (ARKK) sold 132,782 shares, while the ARK Next Generation Internet ETF (ARKW) disposed of 16,998 shares, for a total value of 24 million dollars at Wednesday’s closing price. 

ARK Invest’s frequent practice is to reduce its holdings in Coinbase as the value of the shares increases. This is in accordance with its policy of maintaining exposure to individual companies within a maximum of 10% of its holdings.

However, COIN remains above this threshold in both ARKK and ARKW.

ARKW has also sold a considerable number of shares of the Grayscale Bitcoin Trust (GBTC), reducing its stake by 398,383 and acquiring another 158,334 shares of Block (SQ). 

This company offers cryptocurrency payments through its Cash app and recently introduced a new self-custody bitcoin wallet earlier this month.

Despite a slight widening of the GBTC discount to net asset value, which was only 0.33 percentage points on Wednesday at 7.9%, this value remains significantly below the peak of 12.5% recorded earlier this month. 

In addition, it remains close to the minimum since August 2021, according to data from Ycharts. Meanwhile, the value of Bitcoin has risen by 3.3%, surpassing $44,000 for the first time in 10 days yesterday, according to data from CoinDesk Indices.

Brian Armstrong: politicians’ anti-crypto positions could be a risk for the 2024 elections

Brian Armstrong, CEO of Coinbase, recently addressed the political landscape in the United States regarding cryptocurrencies. In particular, he warned against a strong anti-crypto stance as an inadequate strategic move for the upcoming 2024 elections.

This opinion is part of the context of the evolution of the digital resources landscape and the growing adoption of cryptocurrencies among American citizens.

The discussion focuses on the Digital Asset Anti-Money Laundering Act, presented by US senators Elizabeth Warren and Roger Marshall.

This bipartisan legislation aims to integrate the digital resource ecosystem with existing anti-money laundering (AML) and counter-terrorism financing regulations. 

It also proposes to extend the responsibilities of the Bank Secrecy Act to various actors in the digital resources space and seeks to prohibit financial institutions from using technologies that enhance anonymity in digital resource transactions. 

The law represents a significant push towards stricter regulatory control of the digital asset industry. Link to source

Armstrong supports his thesis with the increasing adoption of cryptocurrencies in the United States, citing statistics that indicate that currently 52 million citizens of Americans hold cryptocurrencies.

In addition, 38% of young people consider them as a means to improve economic opportunities. 

However, it is important to note that the sources of the cited data have not been provided, and the numbers appear to come from a Coinbase report published in October 2023, based on surveys conducted primarily by Morning Consult in the summer and fall of the same year.

The intersection between politics and cryptocurrencies is becoming increasingly relevant as the United States approaches the 2024 elections. 

The CEO of Coinbase highlights the potential strategic risk for politicians adopting an anti-crypto stance, considering the growing adoption and interest in digital assets among the American population.