In a strategic move, Ark Invest has offloaded another portion of its Coinbase holdings, selling over $29 million worth of COIN shares from its ETFs. This decision aligns with Ark’s target weighting policy and follows Coinbase’s strong performance in the last quarter of 2023.
Ark Invest Sells Over $29 Million in Coinbase Shares Amid Portfolio Rebalancing
Ark Invest, led by CEO Cathie Wood, has been actively selling shares of Coinbase (Nasdaq: COIN), further reducing its stake in the crypto exchange, although Coinbase still is one of the most significant assets of Ark’s portfolio.
On Jan. 3, Ark sold a total of 166,183 COIN shares from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) for a value of $25.3 million at the closing price for the day. The following day, Jan. 4, Ark sold a further 26,743 COIN shares valued at $4.16 million at its closing price.
These recent sales are not out of the ordinary. Ark Invest’s ETFs are target-weighted such that no individual holding should exceed 10% of the fund’s total value. With COIN more than doubling in price in Q4 of 2023, it has exceeded that 10% target in both ARKK and ARKW, resulting in these sales. Indeed, Ark offloaded COIN shares throughout December, including $33 million worth on Dec. 5 and $42 million on Dec. 13.
This move comes amidst the impending U.S. Securities and Exchange Commission (SEC) announcement on spot bitcoin ETFs. The SEC is currently considering 13 proposed spot bitcoin ETFs. The first deadline is Jan. 10 for the joint application submitted by Cathie Wood’s ARK Invest and 21shares. Coinbase has announced plans to roll out spot Bitcoin and Ethereum products to international clients and plans to extend these offerings to retail investors in the coming months.
Ark Invest has made moves in other areas related to crypto. It liquidated its remaining Grayscale Bitcoin Trust (GBTC) holdings worth $200 million in late December, and it reallocated about half of these funds into Bitcoin Futures ETF Bito.
Will Coinbase continue its stellar performance if a spot bitcoin ETF is approved? Share your thoughts and opinions about this subject in the comments section below.