TL;DR Breakdown
- Cathie Wood’s Ark Invest sells shares of Coinbase amidst a 15.2% Bitcoin surge.
- Ark Invest sold 42,613 Coinbase shares, valued at $3.3 million, while Bitcoin touched $34,878.65.
- The firm also divested from Grayscale Bitcoin Trust, reducing its stake by selling 100,739 shares worth $5.8 million.
Ark Invest’s Cathie Wood has offloaded shares of Coinbase Global Inc., even as Bitcoin prices surge, touching a high of $34,878.65 recently. This significant 15.2% spike within 24 hours contrasts sharply with Ark Invest’s decision. Specifically, the firm disposed of approximately 42,613 Coinbase shares through its ARK Next Generation Internet ETF and Ark Fintech Innovation ETF, a transaction worth about $3.3 million, considering Coinbase’s $77.21 closing price on Monday.
Additionally, Ark Invest didn’t stop at Coinbase. The firm also reduced its stake in Grayscale Bitcoin Trust (GBTC), selling 100,739 shares. The total value of these divestitures stands at $5.8 million, highlighting a notable portfolio adjustment amid the cryptocurrency’s market ebullition.
Significantly, the sales did not represent a withdrawal from the crypto space. Ark Invest pivoted its strategy towards Robinhood Markets Inc., acquiring a substantial 259,628 shares on Monday. This move aligns with the broader market excitement, with Bitcoin values breaching the $35,000 mark, generating a bullish outlook for related equities.
However, the context of these sales is crucial. The crypto market is buzzing with the expectation of spot bitcoin ETFs gaining approval, a sentiment fueled by BlackRock’s iShares Bitcoin Trust’s appearance on the Depository Trust and Clearing Corporation’s list. Consequently, Ark’s strategy could be a calculated hedge, as its recent filing with the SEC for a spot bitcoin ETF, in collaboration with 21 Shares, underscores its commitment to integrating cryptocurrency into its plans.
Moreover, last month, the SEC’s decision to postpone the review of pending applications, including around 12 spot Bitcoin ETFs, added a layer of complexity and anticipation to the market’s dynamics.
