In a recent development, Cathie Wood’s Ark Invest has made substantial divestments from its holdings in Coinbase and Grayscale Bitcoin Trust (GBTC) shares. The investment firm reportedly sold 237,572 COIN shares, valued at approximately $33.3 million, and 168,127 GBTC shares, amounting to around $5.9 million, on Tuesday. These moves come amidst ongoing price surges in the cryptocurrency market.
Ark Invest executed one of its most significant daily offloads for the year, shedding 28,535 Coinbase shares worth $4 million from its Fintech Innovation ETF, 7,326 shares valued at $1 million from its Next Generation Internet ETF, and a staggering 201,711 shares worth $28.3 million from its Innovation ETF.
This follows a previous sale of 10,218 Coinbase shares, amounting to $1.4 million, on Monday, along with $15 million worth of Coinbase stock sold by Ark Invest just last week.
While Coinbase’s stock currently trades at $141.99 in pre-market trading, marking a remarkable 10% increase over the past week and an impressive 67% surge over the past month, it remains down approximately 60% from its all-time high recorded in November 2021.
Significant GBTC sales amidst a narrowing discount
Ark Invest also chose to divest itself of 168,127 GBTC shares, totaling $5.9 million, from its Next Generation Internet ETF. This sale follows a previous transaction on November 24, where the firm sold 94,624 GBTC shares worth $2.8 million from the same fund. GBTC shares witnessed substantial gains recently, with a price increase of over 11% in the last week and a remarkable 30% surge over the past month, mirroring the broader upswing in the price of Bitcoin.
Notably, the discount to net asset value (NAV) for GBTC has significantly narrowed in recent months, dropping from over 40% in the summer to less than 10% last month. The discount to NAV indicates the difference between the market price of each share and the value of the Bitcoin it represents. Presently, GBTC’s discount to NAV stands at 10.5%, according to data from YCharts.
In addition to the significant divestments from Coinbase and GBTC, Ark Invest made a strategic move into Robinhood shares. The firm acquired 9,586 HOOD shares valued at $100,000 for its Fintech Innovation ETF on Tuesday. This purchase follows earlier acquisitions of $140,000 worth of shares on Monday and a substantial $3 million investment in HOOD made just last week.
