Cathie Wood’s flagship fund, the ARK Innovation ETF, has sold a portion of its shares in Coinbase Global, the popular cryptocurrency exchange. This move comes as Coinbase’s stock price continues to rise due to excitement surrounding its involvement in the anticipated launch of a Bitcoin exchange-traded fund (ETF).
According to a trade notification, the ARK Innovation ETF sold 132,152 shares of Coinbase, totaling approximately $11.8 million at Coinbase’s closing price of $89.15 on Tuesday. This decision was made following the news that a proposed Bitcoin ETF, to be launched by Cboe BZX Exchange, would involve surveillance-sharing agreements with Coinbase.
Despite facing a lawsuit from the Securities and Exchange Commission, Cathie Wood’s ARK Invest has been an avid buyer of Coinbase shares. The recent sale only represents a small portion of ARK Innovation ETF’s total holding, which accounted for more than 8% of the ETF’s assets, valued at over $711 million as of Wednesday.
Cathie Wood’s decision to sell Coinbase shares amidst the rally over Bitcoin ETF hopes indicates a cautious approach. While the crypto exchange’s involvement in the ETF launch has generated excitement, it is important to note the potential risks and uncertainties surrounding the regulatory landscape.
As an influential player in the cryptocurrency market, ARK Invest’s moves attract attention from both investors and industry observers. Wood’s flagship fund has consistently demonstrated its commitment to exploring opportunities in the digital asset space, even amid regulatory challenges.
