ARK Invest, one of the issuers of spot Bitcoin exchange-traded funds (ETFs) in the United States, has decided to take profits from its Coinbase holdings as the stock price of the crypto exchange rises above $270.
On March 21, ARK sold 199,526 Coinbase shares from its ETFs, as per a trade notification observed by Cointelegraph. This included 133,533 shares from the ARK Innovation ETF (ARKK), valued at approximately $35 million based on Coinbase’s closing price of $262 on that day.
Apart from ARKK, ARK also offloaded 59,215 shares from the ARK Next Generation Internet ETF (ARKW) and 6,778 shares from the ARK Fintech Innovation ETF (ARKF). In total, the sale amounted to $52.3 million at Coinbase’s closing price on March 21.
The sale coincided with Coinbase stock witnessing steady growth, reaching above $270 for the first time since December 2021. On March 21, Coinbase stock briefly exceeded $276, reflecting the positive trajectory.
This recent Coinbase sale by ARK is among its most significant in 2024. Notably, on March 11, ARK sold 270,365 Coinbase shares, and on February 16, the firm made its largest Coinbase sale of the year, disposing of 499,149 COIN shares.
In addition to Coinbase, ARK has been actively divesting shares of Block, a Bitcoin-focused fintech firm, and Robinhood. On March 21, ARK sold 188,519 Block shares from its ARKK fund, generating $15.8 million. Furthermore, 93,002 Robinhood shares worth approximately $2 million were sold from the ARKW ETF to ensure compliance with Rule 12d3-1.
Rule 12d3-1 mandates that ETFs cannot acquire securities exceeding 5% of their total assets. ARK has been adjusting its holdings of Robinhood shares to comply with this regulation, evident from its recent sales on March 14 and March 21.
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