- ARK Invest sold $20.6 million worth of Coinbase shares on January 5th as part of its ongoing divestment from the cryptocurrency exchange.
- Coinbase remains a significant asset in ARK’s ETFs, constituting the largest holding in ARKK, ARKW, and ARKF portfolios.
- The verdict on ARK’s ARK 21Shares Bitcoin ETF is expected by January 10th.
Cathie Wood’s ARK Invest continued its Coinbase share sell-off, disposing of 133,823 shares across three of its ETFs, with a total value of approximately $20.6 million as of January 8.
On the Trading Block
ARK Invest revealed its trades on January 5, which included the sale of:
- 107,151 Coinbase shares from the ARK Innovation ETF (ARKK)
- 15,892 from the ARK Next Generation Internet ETF (ARKW)
- 10,780 from the ARK Fintech Innovation ETF (ARKF).
This divestment occurred as Coinbase’s stock opened trading at $152.67 and closed at $153.98.
A String of Sales
This isn’t the first time ARK Invest has reduced its Coinbase holdings. On January 3, the company sold 166,000 Coinbase shares worth approximately $25 million, following a sell-off of 237,000 shares on December 5, 2023. In total, ARK Invest has netted around $78 million from these recent Coinbase share sales.
Despite these ongoing divestments, ARK Invest still holds a substantial number of Coinbase shares. The cryptocurrency exchange remains the largest asset in ARK’s ARKK ETF, accounting for 10.04% of the portfolio. It also holds the top spot in the ARKW ETF at 10.37% and in the ARKF ETF at 13.41%.
BTC ETF Anticipation
These sales come amid growing anticipation in the crypto community regarding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) for U.S. investors by the United States Securities and Exchange Commission (SEC). ARK Invest, led by Cathie Wood, is among the 14 companies that have submitted applications for a spot BTC ETF with the SEC.
Read: Wait a bit more ⌛
ARK’s spot Bitcoin ETF, ARK 21Shares, was developed in collaboration with Swiss firm 21Shares, known for offering cryptocurrency exchange-traded products. ARK and 21Shares were the first to update their spot Bitcoin ETF filing ahead of the SEC’s December 29 deadline.
On January 4, the ARK 21Shares Bitcoin ETF filed a registration notice with the SEC, which now has until January 10 to approve or deny the ETF application. The crypto industry eagerly awaits this decision, which could have significant implications for the market’s future.
Other Reasons for selling Coinbase shares
- Profit-taking: Ark Invest likely bought Coinbase shares at a lower price point in late 2022 and early 2023, when the stock was around $60. With Coinbase’s stock price soaring over 400% in 2023, Ark is likely cashing in on some of their profits to lock in gains.
- Rebalancing ETF weightings: Ark’s ETFs are target-weighted, meaning they aim to keep each holding within a specific percentage of the total fund value. As Coinbase’s stock price surged, its weight in Ark’s ETFs (particularly ARKK and ARKW) increased beyond the target. Selling some shares helps maintain the desired weightings and prevent overexposure to any single asset.
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