ARK offloads $5.2M in Coinbase stock amid 18-month high

ARK Invest, one of the companies that submitted an application for a spot Bitcoin (BTC) exchange-traded fund (ETF), is again taking revenues on its Coinbase (COIN) shares as the stock cost surges.On Nov. 27, ARK sold 43,956 Coinbase shares from its ARK Fintech Innovation ETF (ARKF), according to a trade alert seen by Cointelegraph. Coinbase stock reached $119.7 per share at the time of the sale, providing the deal a value of $5.3 million, data from TradingView shows.Coinbase crypto exchange has actually seen its shares jump to an 18-month high after competing exchange Binance and its previous CEO Changpeng Zhao pleaded guilty to cash laundering and sanctions infractions in the United States on Nov. 21, 2023. According to information from TradingView, Coinbase stock is up 168% over the past year, surging more than 220% considering that January 2023. The stock is still down about 70% from its all-time high of $319 published in September 2021, or a few months after its trading launch in April 2021. Coinbase (COIN) cost chart over the past year. Source: TradingViewARK has actually been repeatedly selling Coinbase stocks throughout 2023. Cathie Woods financial investment company formerly unloaded 63,675 COIN shares in October from its ARK Next Generation Internet ETF (ARKW), totaling $5.1 million.ARK was also actively selling Coinbase shares in July 2023, when the stock was trading around $90. According to ARKs trading data, the company off-loaded more than $103 million in Coinbase shares in July.ARK has also been actively offering off Grayscale Bitcoin Trust (GBTC) stock. On Nov. 24, the ARKW discarded 94,624 GBTC shares for approximately $3 million after selling nearly 700,000 GBTC shares in one month.According to Bloombergs ETF expert Eric Balchunas, ARKs sales of GTBC are not a sign that the company is not bullish on Bitcoin, or making room for its upcoming area Bitcoin ETF, the ARK Invest and 21Shares (ARKB). “Neither holds true,” Balchunas composed on X (formerly Twitter) on Nov. 27, referring to his previous observations that ARK was most likely selling winners and vice-versa to maintain desired weightings.Related: Binance charges show following the guidelines was the ideal choice– Coinbase CEO”Since GBTC is up 76% given that August ARK has to sell lots of shares to keep a 9%-ish weighting. And even with that selling, its weighting has actually gone up,” the ETF analyst noted.While selling Coinbase and GBTC, ARK has actually simultaneously been bagging some crypto-related stocks. On Nov. 27, ARKF obtained 252,421 shares of the crypto-friendly banking app SoFi. Year to date, ARK purchased a total of 1.6 million SOFI shares, worth $11 million at todays prices, according to TradingView. ARK has actually also been building up shares of the crypto-friendly financial investment app Robinhood, purchasing $1.1 million worth of the stock on Nov. 8. Publication: Crypto policy– Does SEC Chair Gary Gensler have the last say?

Other Questions People Ask

What prompted ARK to offload $5.2M in Coinbase stock amid 18-month high?

ARK Invest decided to sell $5.2 million worth of Coinbase shares as the stock reached an 18-month high of $119.7 per share. This decision comes after a significant surge in Coinbase's stock price, which has increased by 168% over the past year. The sale appears to be part of ARK's strategy to take profits while the stock is performing well, especially following the legal troubles faced by competitor Binance.

How does ARK's sale of Coinbase stock relate to its overall investment strategy?

ARK's offloading of $5.2 million in Coinbase stock is consistent with its broader investment strategy, which involves actively managing its portfolio to maintain desired weightings. Throughout 2023, ARK has sold significant amounts of Coinbase shares, indicating a tactical approach to profit-taking. Despite these sales, ARK continues to invest in other crypto-related stocks, suggesting a balanced strategy between taking profits and reinvesting in the sector.

What impact did Binance's legal issues have on Coinbase's stock price?

The legal issues surrounding Binance and its former CEO have positively impacted Coinbase's stock price, contributing to its rise to an 18-month high. As investors seek stability in the crypto exchange market, Coinbase has benefited from this shift in sentiment. This context likely influenced ARK's decision to sell a portion of its Coinbase shares at a peak price, capitalizing on the favorable market conditions.

What other actions has ARK taken regarding its cryptocurrency investments recently?

In addition to offloading $5.2 million in Coinbase stock, ARK has been actively selling shares of the Grayscale Bitcoin Trust (GBTC) and acquiring other crypto-related stocks. For instance, ARK sold nearly 700,000 GBTC shares in a month and purchased 252,421 shares of SoFi on November 27. These moves indicate that while ARK is taking profits from certain investments, it is also strategically positioning itself in other areas of the cryptocurrency market.

What does the future hold for ARK's investments in cryptocurrency stocks?

The future of ARK's investments in cryptocurrency stocks seems focused on balancing profit-taking with strategic acquisitions. As ARK continues to sell off portions of its Coinbase and GBTC holdings, it is simultaneously investing in emerging players like SoFi and Robinhood. This approach suggests that ARK is looking to capitalize on both established and growing opportunities within the crypto sector, potentially positioning itself for long-term gains as the market evolves.