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Cathie Wood’s Ark Invest offloads record number of Coinbase stocks

TL;DR

  • Ark Invest, led by Cathie Wood, sold 335,860 Coinbase shares last week, the largest sale since July, amounting to approximately $49.2 million.
  • The sales were part of a strategic portfolio adjustment, with Coinbase’s stock exceeding the targeted 2-10% weighting in Ark’s ETFs.

Ark Invest, led by Cathie Wood, has intensified its Coinbase (COIN) share sale. On Friday last week, the firm executed another sale, offloading about 335,860 COIN shares, valued at approximately $49.2 million; this follows the $59 million in COIN it sold earlier last week. 

Strategic portfolio adjustments

Ark Invest’s sale was distributed across three exchange-traded funds (ETFs), mostly from the Innovation ETF (ARKK). This move raised substantial capital, reflecting a strategic shift in the firm’s investment approach. The recent appreciation in Coinbase’s stock, paralleling Bitcoin’s rally, has prompted consistent sales from Ark Invest. The firm maintains a policy of keeping individual holdings within a 2-10% weighting range in its ETFs. With Coinbase’s stock reaching heights not seen since April 2022, its weighting in ARK’s ETFs had exceeded this threshold.

Despite these sales, COIN still represents a significant portion of Ark Invest’s portfolio, accounting for over 11% of ARKK and the Next Generation ETF (ARKW) and more than 13% in the Fintech Innovation ETF (ARKF).

Market context and implications

Coinbase’s stock closed last Friday at $146.62, marking a 7.66% increase on the day. This performance aligns with a broader trend in the cryptocurrency market, where Bitcoin surged above $44,000 before experiencing a correction.  Ark Invest also reduced its holdings in the Grayscale Bitcoin Trust (GBTC), selling 102,672 shares valued at around $3.6 million. GBTC’s share, representing 8.33% of ARKW, mirrors the dynamic shifts in the crypto market.

Coinbase’s stock, though experiencing a significant uptick and standing 300% higher year-to-date, still remains 57% below its all-time high of $342.98 set in November 2021. With a current valuation of $27.3 billion, 

The firm’s strategy indicates a keen awareness of market trends and a readiness to adjust its holdings to maintain balanced and strategic portfolio weightings. 

According to CoinGlass data, today’s market volatility led to the liquidation of over $94 million worth of Bitcoin positions. The majority of these positions ($85 million) were longs, resulting in a total of $360 million in liquidations across different exchanges.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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