Cathie Wood’s ARK Invest continues to make strategic moves in the cryptocurrency market, selling another 43,956 Coinbase shares as the stock reaches an 18-month high of $119.7 per share. This move follows ARK’s trend of profit-taking on its Coinbase holdings amid the digital asset’s impressive performance.
On November 27, ARK executed the sale from its ARK Fintech Innovation ETF, realizing a transaction value of $5.3 million at the prevailing Coinbase stock price. Notably, Coinbase’s stock surge was propelled by the legal challenges faced by rival exchange Binance and its former CEO Changpeng Zhao, who pleaded guilty to money laundering and sanctions violations in the United States on November 21, 2023.
While Coinbase’s stock has seen a remarkable 168% increase over the past year and surged more than 220% since January 2023, it remains down about 70% from its all-time high of $319 in September 2021. ARK’s decision to sell comes after multiple divestments throughout 2023, including a significant offload of 63,675 Coinbase shares in October from its ARK Next Generation Internet ETF, amounting to $5.1 million.
Not limited to Coinbase, ARK has also been actively shedding shares of Grayscale Bitcoin Trust (GBTC). Despite recent sales, Bloomberg’s ETF analyst Eric Balchunas clarifies that these actions don’t signify a lack of bullish sentiment on Bitcoin or preparations for ARK’s upcoming spot Bitcoin ETF with 21Shares. Balchunas suggests that ARK is likely adjusting its portfolio weightings by selling winners and maintaining desired allocations.
Simultaneously, ARK has shown an interest in accumulating other crypto-related stocks. On November 27, ARK Fintech Innovation ETF acquired 252,421 shares of the crypto-friendly banking app SoFi. Year-to-date, ARK has bought a total of 1.6 million SoFi shares, amounting to $11 million at current prices. Additionally, ARK has been steadily increasing its holdings in the crypto-friendly investment app Robinhood, purchasing $1.1 million worth of the stock on November 8.
As ARK Invest navigates the dynamic cryptocurrency market, these strategic moves reflect the firm’s adaptive approach to portfolio management, balancing profit-taking with strategic acquisitions in the ever-evolving crypto landscape. Investors will be closely watching ARK’s future moves as it continues to position itself in the rapidly changing digital asset market.