ARK Invest, led by Cathie Wood, has recently made significant moves in its stock portfolio. The investment firm has sold off a substantial portion of its Coinbase shares as the cryptocurrency exchange reached an 18-month high of $119.7 per share.
ARK Invest executed a transaction involving the sale of 43,956 Coinbase shares from its ARK Fintech Innovation ETF. The sale amounted to approximately $5.2 million based on the prevailing Coinbase stock price at the time of $119.7 per share. This move comes as ARK Invest has been actively managing its portfolio and capitalizing on the recent surge in Coinbase’s stock value.
Coinbase soars to an 18-month high
The decision to sell Coinbase shares aligns with the cryptocurrency exchange’s impressive performance in the market. Coinbase reached an 18-month high following a significant event in the cryptocurrency industry.
On November 21, 2023, Binance, one of Coinbase’s major rivals, and its former CEO, Changpeng Zhao, pleaded guilty to money laundering and sanctions violations in the United States. This development led to increased confidence in Coinbase, driving its stock price higher.
ARK’s ongoing portfolio adjustments
ARK Invest’s recent sale of Coinbase shares is not an isolated event but part of a series of portfolio adjustments throughout 2023. In October, the investment firm offloaded 63,675 Coinbase shares from its ARK Next Generation Internet ETF, amounting to $5.1 million. Additionally, in July 2023, when Coinbase’s stock was trading at around $90 per share, ARK actively sold more than $103 million worth of Coinbase shares.
It’s worth noting that these sales are not indicative of ARK’s lack of confidence in the cryptocurrency market. In fact, ARK Invest continues to actively manage its holdings and optimize its portfolio.
Bloomberg’s ETF analyst, Eric Balchunas, has emphasized that ARK’s sales of Grayscale Bitcoin Trust (GBTC) stock and Coinbase shares are strategic moves to maintain desired portfolio weightings. Despite the sales, ARK’s weighting in GBTC has even increased, demonstrating a commitment to the cryptocurrency sector.
While selling off Coinbase and GBTC shares, ARK has been diversifying its portfolio with investments in other cryptocurrency-related stocks. ARK Fintech Innovation ETF acquired 252,421 shares of the crypto-friendly banking app SoFi.
ARK’s investments in SoFi amount to 1.6 million shares year-to-date, with a total value of $11 million at current market prices. Additionally, ARK has been accumulating shares of the crypto-friendly investment app Robinhood, with a recent purchase of $1.1 million worth of stock
