ARK Invest, a key player in the race for a Bitcoin exchange-traded fund (ETF), has made another substantial sale of Coinbase (COIN) shares, marking one of its largest daily disposals in 2023. On December 5, ARK unloaded 237,572 Coinbase shares across its three funds, reaping over $33 million as the Coinbase stock closed at $140 per share. This move follows a trend of strategic selling by ARK, shedding 201,711 COIN shares from the ARK Innovation ETF (ARKK), and additional quantities from the ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW).
Coinbase’s Rally Amidst a Bullish Crypto Market
Coinbase’s stock has been on an upward trajectory, surging 280% year-to-date in sync with the bullish crypto market. The platform’s shares reached a new yearly high above $147.4 on December 5, attaining levels not seen since April 2022. The rally has been accentuated by favorable market conditions and the legal issues faced by rival Binance and its former CEO Changpeng Zhao, who pleaded guilty to money laundering and sanctions violations in November.
ARK’s Strategic Moves in the Crypto Market
Despite the recent sale, ARK Invest maintains a significant holding of COIN shares, with Coinbase being the most substantial asset in the portfolio of the ARKF ETF. It constitutes over 13% of the fund’s net assets, amounting to nearly $135 million as of December 5. Coinbase also holds a prominent position in the ARKW ETF and the ARKK ETF, making up 11.72% and 11.64%, respectively.
Continued Investment and Diversification
While actively divesting from Coinbase, ARK Invest is concurrently exploring opportunities in other crypto-related stocks. The firm has shown interest in Robinhood (HOOD) and continued to acquire shares in SoFi Technologies, even after the announcement of the termination of its crypto trading services. These strategic moves underscore ARK’s commitment to navigating the evolving landscape of the crypto market.