ARK Invest, known for its innovative investment strategies, has been actively managing its portfolio, particularly with regards to its Coinbase and Grayscale Bitcoin Trust (GBTC) holdings.
On November 27, ARK executed a notable sale of 43,956 shares from its ARK Fintech Innovation ETF, which included shares of Coinbase. At the time of this sale, Coinbase’s stock price was at $119.7 per share, valuing the transaction at approximately $5.3 million, as per TradingView data. This move came amidst a significant surge in Coinbase’s stock value, which has risen to an 18-month high. This increase was particularly notable following the guilty plea of Binance and its former CEO Changpeng Zhao on charges of money laundering and sanctions violations in the United States on November 21, 2023.
Over the past year, Coinbase’s stock has seen a dramatic increase of 168%, with a surge of over 220% since January 2023. Despite this growth, the stock remains about 70% below its all-time high of $319, recorded in September 2021, a few months after its initial trading launch in April 2021.
Throughout 2023, ARK has been consistently reducing its holdings in Coinbase. In October, Cathie Wood’s investment firm sold 63,675 Coinbase shares from its ARK Next Generation Internet ETF (ARKW), amounting to $5.1 million. Additionally, in July 2023, when Coinbase’s stock was around $90, ARK offloaded over $103 million worth of shares.
ARK’s portfolio adjustments also include the sale of Grayscale Bitcoin Trust (GBTC) stock. On November 24, ARKW sold 94,624 GBTC shares for about $3 million, following the sale of nearly 700,000 GBTC shares in the preceding month.
Eric Balchunas, a Bloomberg ETF analyst, commented on these sales, particularly of GBTC. On November 27, he noted on X (formerly Twitter) that ARK’s divestment from GBTC should not be interpreted as a lack of confidence in Bitcoin or as making space for its upcoming spot Bitcoin ETF, a collaboration between ARK Invest and 21Shares. Balchunas suggested that these sales are more likely part of ARK’s strategy to maintain desired weightings in its portfolio, often involving selling high-performing assets and vice versa.
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