Cathie Wood’s Ark Invest has sold around $12 million worth of shares in Coinbase, the cryptocurrency exchange. The move comes as Coinbase announced a surveillance-sharing agreement with CBOE’s BZX Exchange for five of its spot Bitcoin ETFs, causing the stock to rally nearly 10%. Ark Invest had been a strong supporter of Coinbase, consistently buying shares as the crypto industry faced challenges such as bankruptcies and increased regulatory scrutiny.
According to Ark Invest’s recent 13F filing, the firm held 12.12 million shares of Coinbase valued at $867.32 million at the end of the second quarter. This marked an increase from the 9.19 million shares valued at $325.21 million that it held at the end of 2022. The recent sale of 135,152 shares would have fetched Ark Invest proceeds of $12.05 million.
The decision to sell some of its Coinbase shares is notable as Ark Invest has primarily been a buyer of the stock this year. Apart from a single sale transaction by the Ark Fintech Innovation ETF in March, the firm has consistently supported Coinbase. The move to offload some shares suggests a re-evaluation of Ark Invest’s investment strategy in the cryptocurrency space.
Coinbase’s stock rallied 9.78% to $89.15 on the day of the announcement, adding to its recent gains. The exchange has seen significant volatility since its direct listing earlier this year but has proven resilient amid market fluctuations. The agreement with CBOE’s BZX Exchange is seen as a positive development, providing additional legitimacy to Coinbase’s Bitcoin ETFs.
While Ark Invest’s decision to sell a portion of its Coinbase shares may be seen as a shift in strategy, the firm continues to hold a substantial position in the exchange. As the crypto industry continues to evolve, it will be interesting to see how Ark Invest navigates the shifting landscape and adapts its investment approach.
Overall, this development highlights the dynamic nature of the crypto market and the need for investors to carefully monitor and adjust their strategies. Ark Invest’s actions in relation to Coinbase serve as a reminder of the importance of staying agile and responsive to changing market conditions.
