In an investment landscape where Bitcoin takes center stage, veteran advocate Cathie Wood has her firm, ARK Invest, skimming some gains off its substantial stake in Coinbase.
The operation coincides with a recent surge in Coinbase’s share price, illustrating ARK’s strategic acumen in capitalizing on favorable market trends.
Cashing in on the crypto exchange
On July 11th, ARK Invest demonstrated its propensity for prudent financial decisions by divesting a portion of its Coinbase holdings. The firm sold 135,152 shares, valued at $12 million, from its key exchange-traded fund (ETF), the ARK Innovation ETF.
The volume sold constituted a mere 0.14% of the fund’s total assets, suggesting that ARK’s confidence in Coinbase remains steadfast despite the modest sell-off.
This strategic divestment unfolded as Coinbase’s share price experienced a robust upturn. On the day of the sale, the price spiked to over $90 from around $82, touching an intraday high of $90.9. Wood’s decision to cash in on the uptick was well-timed, with the stock closing the day at $89.
Drawing on TradingView’s data, Coinbase’s stock performance over the past month shows a remarkable increase of over 60%, while the year-to-date appreciation stands at an impressive 140%.
Such momentum in the company’s market value underscores the growing appetite for crypto-oriented stocks among investors.
This is not the first time that ARK has realized gains from its Coinbase holdings. Earlier in March, the firm offloaded 160,887 Coinbase shares from the ARK Fintech Innovation ETF, garnering proceeds of $13.5 million, equating to approximately $84 per share.
ARK Invest’s continued faith in Coinbase
Despite the occasional profit-taking, ARK’s conviction in Coinbase’s potential is unwavering. Prior to the recent sale, ARK had been actively increasing its Coinbase holdings across several funds.
During June alone, the firm snapped up about $40 million worth of Coinbase shares. This followed acquisitions of approximately $33 million and $117 million worth of shares in April-May and March, respectively.
ARK is not alone in capitalizing on Coinbase’s elevated stock price. Key Coinbase executives, including CEO Brian Armstrong, have also been liquidating their positions amid the ongoing rally.
Earlier in July, Armstrong and a few other senior Coinbase personnel collectively sold 88,058 shares, valued at about $6.9 million.
Coinbase’s resilience amid legal challenges
The bullish performance of Coinbase’s stock is noteworthy, particularly in light of the ongoing lawsuit by the United States Securities and Exchange Commission.
The growth seems to be primarily driven by investor enthusiasm surrounding BlackRock’s Bitcoin ETF filing, which named Coinbase as a “surveillance-sharing” partner.
This factor seems to be fueling a FOMO (Fear Of Missing Out) sentiment among investors, who are scrambling to partake in the potential gains.
As the cryptocurrency sector continues to evolve, ARK Invest’s strategic position and astute portfolio maneuvers underscore its commitment to harnessing the financial opportunities within this burgeoning space.
With a keen eye on the market and a clear strategy, ARK Invest continues to exhibit its prowess in the world of innovative investments.
