In conjunction with divesting from Coinbase and even Grayscale Bitcoin Trust (GBTC) stocks, ARK Invest actively invests in other crypto-friendly companies like SoFi and Robinhood.
Notably, they have recently acquired 252,421 shares of SoFi and have been steadily accumulating shares in Robinhood, amounting to a total investment of over $1.1 million.
In a strategic move, ARK Invest has sold $5.3 million worth of Coinbase stocks, taking advantage of the recent surge in their price.
Meanwhile, this decision comes as Coinbase's stock reached its highest point in the past 18 months, with a significant value increase of 168% over the last year.
It is worth noting that ARK Invest, despite being an aggressive investor for Coinbase, has been consistently selling Coinbase stocks since 2023, including a substantial sale of $5.1 million in October.
Additionally, when Coinbase's stock valuation hovered around $90, ARK offloaded over $103 million worth of Coinbase shares.
Cathie Wood's ARK Invest sold approximately $5.26 million worth of COIN shares on Monday.
Moreover, this decision was made as Coinbase's shares soared to $119.7 per share at the time of the sale.
TradingView data shows Coinbase's stock has increased 168% in the past year and more than 220% since January 2023.
📈 #Coinbase shares soar to an 18-month peak amid #Binance's legal challenges, closing at $119.77 on Nov. 27 - the highest since May 2022. COIN's year-to-date gain stands at 256.5%, yet it's still 65% below its Nov. 2021 high. 🚀#CryptoNews #CryptoCommunity pic.twitter.com/RQgR68bP7m
— 1ATH.Studio (@1ATHStudio) November 28, 2023
However, it is crucial to mention that the stock is currently 70% below its all-time high of $319, reached in September 2021.
Furthermore, ARK Invest has applied for participation in a Bitcoin ETF with the Securities and Exchange Commission (SEC). Recently, Ark Invest acquired a UK-based investment firm, Rize ETF, renaming it to Ark Invest Europe in a bid to diversify.
Interestingly, ARK has been consistently selling Coinbase stocks throughout this year. In October alone, they sold approximately 63,675 Coinbase shares, valued at $5.1 million.
Moreover, historical records also indicate a significant sale of Coinbase shares worth approximately $103 million in July.
ARK's divestment activities do not stop at Coinbase. The investment firm has also been actively reducing its shares in Grayscale Bitcoin Trust (GBTC), selling around 700,000 GBTC shares within a single month.
Recently, on November 24, they dumped approximately 94,624 GBTC shares for roughly $3 million.
Meanwhile, the implications of these sales have raised questions among crypto enthusiasts. However, Eric Balchunas, an ETF analyst at Bloomberg, clarifies that ARK's sales of GBTC suggest neither a lack of optimism about Bitcoin nor a preparation for their upcoming Bitcoin ETF, the ARK Invest and 21 Shares.
Also, Balchunas suggests that ARK's motive may be to balance its portfolio by selling winners and acquiring underperformers.
Coinbase, the largest cryptocurrency exchange in America, has solidified its position in the market since its listing on NASDAQ in 2021.
Several factors contribute to the growth of its stock. Notably, renowned Wall Street firms such as Fidelity and BlackRock have designated Coinbase as a custodian or surveillance-sharing partner for their spot bitcoin ETF applications.
Additionally, the ongoing situation involving Binance, Coinbase's primary rival, may have played a role in Coinbase's stock surge.
Following a settlement with the Department of Justice, Binance is reluctantly exiting the US market, potentially allowing Coinbase to capture a significant portion of Binance's market share.
Conclusions
ARK Invest expertly leverages the soaring price of Coinbase's stock while maintaining its steadfast support for Bitcoin.
Through strategic divestment from Coinbase and GBTC stocks, ARK Invest provides opportunities to invest in other promising crypto-friendly companies like SoFi and Robinhood.
As cryptocurrency continues to grow, ARK Invest remains at the forefront, adapting its portfolio to capture new opportunities in the market.