ARK Invest offloads an additional $20.6m worth of Coinbase shares.
ARK Invest, the investment firm led by Cathie Wood, has sold an additional $20.6 million worth of shares in Coinbase across three of its exchange-traded funds (ETFs). The sales took place on January 5 and included 107,151 shares ($16.5 million) from the Innovation ETF, 15,892 shares ($2.4 million) from the Next Generation Internet ETF, and 10,780 shares ($1.7 million) from the Fintech Innovation ETF. This follows the $25.3 million in COIN shares sold on December 3 and $4.1 million on December 4, bringing ARK Invest’s total sales of Coinbase stock to $50 million. These sales are part of ARK Invest’s strategy to maintain portfolio balance and prevent any single stock from exceeding 10% of an ETF’s total value.
The majority of ARK’s investment in Coinbase is held in its ARKK fund, which currently holds over $850 million worth of COIN shares. With the recent offload, ARKK’s holding in COIN has decreased to 10.04%. This suggests that ARK may pause further sales from this ETF unless there is a significant increase in Coinbase’s share price. The ARKW and ARKF ETFs have smaller holdings in Coinbase, but their weightings are slightly higher at 10.37% and 13.41%, respectively.
ARK’s strategy of rebalancing its fund weightings was also evident in December when it sold $200 million worth of Coinbase shares following a 40% surge in COIN’s price.
As of the market close on Friday, Coinbase shares were trading at $153.98, experiencing a slight 1% decrease for the day. However, the stock has seen a remarkable 350% increase over the past year, although it remains 55% below its all-time high of $342.98 reached during the peak of the crypto bull market in November 2021.
