Cathie Wood’s investment firm, ARK Invest, has recently sold over $25 million worth of Coinbase shares from two of its exchange-traded funds (ETFs). The sale took place on Wednesday, with a total of 166,183 COIN shares being sold from ARK’s Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW). At the closing price of the crypto exchange, this amounted to a value of $25.3 million.
The decision to sell the Coinbase shares comes as the crypto market’s rally halted and bitcoin experienced a slump. One of the contributing factors to this downturn was a leverage flush, as the market became overheated. As a result, Coinbase’s Nasdaq-listed shares fell by 2.96% to $152.24 on Wednesday.
ARK’s ETFs have a target weighting strategy in place, which ensures that no individual holding exceeds 10% of the fund’s total value. However, COIN has consistently held above this threshold in both ARKK and ARKW, as its price more than doubled in the last three months of 2023. Consequently, Cathie Wood’s firm has been regularly selling off the crypto exchange’s stock.
This move by ARK Invest follows its recent investment in ProShares Bitcoin ETF, after dumping its holdings in Grayscale. The investment firm seems to be actively managing its portfolio and making strategic decisions based on market conditions and the performance of individual assets.
While the sale of Coinbase shares by ARK Invest may raise questions about the investment firm’s outlook on the crypto exchange, it is important to note that this article does not provide any further comments or disclaimers regarding the motivations behind the sale. It is merely reporting on the transaction and its impact on the market.
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