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- 1 Cathie Wood’s Ark Invest sold a scalable amount of Coinbase shares right after an upsurge.
- 2 The analysis unfolds Ark’s strategic investment and some other developments.
When a prominent investor takes a decision, it creates a lot of buzz in the markets. That’s because people follow in their footsteps in their investments. Recently, Cathie Wood’s investment firm ARK Invest sold a large portion of its Coinbase holdings. As per the reports, the company took that decision after the latter’s stock prices took a spike.
ARK’s peddling ride with Coinbase shares
To be precise, the company sold 135,152 Coinbase shares worth $12 million on 11 July. These shares were a part of its ARK Innovation ETF, a part of the company’s diverse ETF holdings. According to its trade notification, the sold shares were equivalent to 0.14% of the fund’s total holdings.
The market analysts termed it a very swift movement. Coinbase’s share prices rallied on 11 July and within a few hours, ARK sold them. As per TradingView reports, the price surged from $82 to $90.9. But after the stock sale, it registered a minor slump and closed at $89.
The TradingView data also points out the consistent uptick in Coinbase for over a month. According to them, its year-to-date value has gained a value of 140% and its face value has seen a 60% jump. Interestingly, this is not the first time that ARK pocketed profits from selling Coinbase stock.
The investment firm did the same thing on March 21. At that time, they sold 160,887 Coinbase shares from the same ETF. It sold every share at $84 and made $13.5 million. Looking at the history of ARK one can say that the firm has been doing it strategically. For the past few years, Cathie Wood’s company has been amassing different shares in its ETF holdings.
A series of stock purchases tell us that ARK probably realized the potential in Coinbase’s shares quite earlier. In the month of March, the former bought the latter’s stocks worth $117 million. In April and May, it again purchased shares worth $33 million. And in June, it repeated the cycle with stocks worth $40 million.
And it seems that it’s not just buying spree going rife here. The top brass of Coinbase has been keen to sell their shares too. On June 29, the chief accounting officer Jennifer Jones sold 74, 375 shares worth $5.2 million. On July 6, CEO Brian Armstrong along with many other executives sold 88,058 shares worth $6.9 million.
Another interesting fact is, Coinbase’s shares are seeing an uptrend despite the legal trouble it faces. Recently, the Security and Exchange Commission sued the exchange for irregularities. But at the same time, some other incidents indicated that crypto holds a bright future. The Bitcoin ETF filing by BlackRock has spun off a spate of positive reactions across the markets.
Conclusion
Many believe that the Coinbase stock rally is a result of it. And going by market sentiment, it sounds right too. The markets can take a downturn anytime due to any other news or rumor. For the crypto investors though, there are quite a few positive tiding going around. European Union’s regulatory bid and the US Republican’s crypto draft are also foreboding some positive outcomes for the industry.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
