ARK Invest sells $20.6 million more in Coinbase stock
ARK Invest sold an additional $20.6 million in Coinbase (COIN) stock across three of its exchange traded funds (ETFs).
Of the Coinbase shares Cathie Wood’s investment firm sold on Jan. 5, 107,151 shares ($16.5 million) were in the Innovation ETF, 15,892 shares ($2.4 million) were in the Next Generation Internet ETF, and 10,780 shares ($1.7 million) were in the ETF. It came from fintech. Innovation ETF.
Including $25.3 million of COIN stock sold on December 3 and $4.1 million on December 4, ARK Invest’s total sale of Coinbase shares reached $50 million, despite the stock price falling about 10% last week.
This series of sales is a continuation of the company’s strategy to balance its portfolio, particularly to prevent any single stock exceeding 10% of the ETF’s total value.
The majority of ARK’s Coinbase investments are in the ARKK fund, which holds over $850 million in COIN. The recent offload has reduced ARKK’s COIN holdings to 10.04%, indicating that ARK may soon stop further selling this ETF unless Coinbase’s stock price surges again.
The ARKW and ARKF ETFs have smaller holdings on Coinbase, but their weightings are slightly higher at 10.37% and 13.41%, respectively.
ARK’s fund reweighting strategy was also evident when it sold $200 million worth of Coinbase stock in December after the price of COIN surged 40%.
At market close on Friday, Coinbase shares were trading at $153.98, down slightly 1% on the day. Despite this, the stock price is up a whopping 350% over the past year. However, it remains 55% below the all-time high of $342.98 recorded at the peak of the cryptocurrency bull market in November 2021.
Source: https://crypto.news/ark-invest-sells-another-20-6m-in-coinbase-shares/
