Cathie Wood Ark Invest Sells 70.6K Coinbase Shares

Ark Invest has recently reduced its holdings in Coinbase, selling significant portions of COIN shares across various ETFs.

Cathie Wood’s Ark Invest has made headlines once again by reducing its Coinbase holdings. This has led to inquiries on the implications for the price of COIN shares.

Notably, the most recent report showed massive sell-offs of the COIN stock across different Ark Invest ETFs. This has sparked debate in the market about the investment firm’s strategy and how it would affect Coinbase’s stock performance.

Ark Invest Continues To Trim Coinbase Shares

Ark Invest under the leadership of renowned investor Cathie Wood, has recently divested a substantial portion of its Coinbase shares as per their latest trade declaration.

The business sold 70,616 Coinbase shares valued at a startling $15.1 million across various Ark Invest exchange-traded funds (ETFs). In the meantime, this is not the first time that Ark Invest has sold off the stocks of the largest cryptocurrency exchange company.

In the past, Ark Invest has made big sales of COIN stocks, which has caused discussion in the cryptocurrency market regarding the potentially major influence that this could have.

However, the most recent report reveals that Cathie Wood’s investment business sold 45,915 shares from its Innovation ETF (ARKK), valued at approximately $9.8 million and 17,755 shares from its Next Generation Internet ETF (ARKW) valued at $3.8 million.

At the same time, Ark has sold 6,946 COIN shares from its Fintech Innovation ETF (ARKF), bringing the total value of the transaction to $1.5 million.

Particularly noteworthy is the fact that this action has rekindled suspicions over the possible repercussions that Coinbase’s stock price and Ark Invest’s investing strategy may bring about.

What’s The Reason Behind The Sell-off?

Cathie Wood has previously addressed the issue, stressing that it is not a case of dumping but rather active portfolio management. This is in spite of the fact that worries regarding Ark Invest’s ongoing sale of Coinbase shares are growing.

Wood noted that Coinbase had experienced considerable growth and now represents more than 10% of Ark Invest’s portfolio during an Ask Me Anything session that took place on the r/Cryptocurrency page of Reddit.

While this was going on, Wood brought attention to the remarkable ninefold growth that Coinbase has had since the spring of 2023 and reaffirmed that profit-taking is a natural technique for rebalancing the portfolio.

Furthermore, she underlined that Ark Invest continues to have a leading position in Coinbase, which is an indication of trust in the firm’s long-term prospects with regard to the company.

Furthermore, Wood highlighted plans to reinvest earnings into other promising stocks, particularly those in the life science sector, emphasizing the importance of a dynamic investment approach in order to maximize returns.

On the other hand, as a result of the article, the price of the COIN stock dropped by 0.83% during the pre-market session on Wednesday and it was trading at $212.56.

Notably, the stock finished the previous trading session at $214.34, which is a decrease of more than 5%. Coinbase stock has increased by more than 36% year-to-date, while also registering a year-over-year increase of about 270%. This is despite the recent decline in the stock’s value.