American investor and chief investment officer of Ark Invest on Friday, December 8, offloaded the largest sale of Coinbase stock, seeking to profit from the recent price rally. The investment firm leveraged the recent pump in crypto exchange Coinbase stock (COIN) price to sell 335,860 shares.
The Friday sale edged closer to matching the July sale of 480000 shares that earned Ark Invest $50.5 million. In particular, the Friday sale is the largest offload by Cathie Wood’s Ark Invest since July.
Cathie Wood’s Firm Execute Million-Dollar Selloff of Coinbase Stock
A closer observation of the Ark Invest sale shows that the investment firm disposed of COIN shares across a trio of exchange-traded funds (ETFs). A breakdown of the sale shows Innovation ETF (ARKK) sold the largest portion. The Friday sale is estimated to raise $49.2 million for the American investment firm as per the day’s closing price of Coinbase.
The Florida-based investment management firm has, in recent weeks, deployed consistent sales of stock belonging to the second-largest crypto exchange by transaction volume.
Coinbase is riding on the highly anticipated approval of spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission. Besides, several of the hopefuls of the spot Bitcoin ETF applications have endorsed Coinbase by its inclusion in a share surveillance sharing agreement.
The confidence portrayed by several of the Wall Street institutional firms led by BlackRock and Fidelity is accelerating COIN price as they seek ETF approval from the Gary Gensler-chaired SEC.
Ark Invest Offloading COIN Rally
The Coinbase stock rally is prompting ARK to deploy the target weighting strategy it uses in running the ETFs. The approach requires individual composite holdings to cap the weighting within the 2% to 10% range of the fund.
COIN stock is realizing an increased rally to levels not realized since April 2022. The increment implies that weighting within Ark Invest’s ETFs is comfortably exceeding 10%.
Despite the series of sales, COIN stock is accounting for 11% of Next Generation ETF (ARKW) and Innovation ETF (ARKK). The Coinbase stock exceeds 13% of the Fintech Innovation ETF (ARKF).
A review of COIN market activity shows the stock jumped 7.66% to close at $146.62 on Friday, December 8. Traders in the market embraced the dips in COIN stock for two days consecutively as the price mildly slid from $147.86.
The Coinbase stock has now pumped to over 336% in 2023. The accelerated rise saw pro-XRP attorney John Deaton project COIN stock to realize the upside potential above $150.
Meanwhile, Cathie Wood has in the week upped the Coinbase selloff that saw the investment management firm sell 180,422 COIN shares on December 6, valued at $25 million. The sale approach followed the December 5 sale of 237,572 Coinbase stock, earning Ark Invest $34 million.
The Friday sale affirms the investment management firm’s preference to offload the COIN shares in the past two months. The move has prompted market observers to question Cathie Wood’s bullish belief in Bitcoin.
Ark Invest Offloads GBTC and Robinhood Shares
Ark Invest also reduced its holdings in the Grayscale Bitcoin Trust (GBTC), with 185,754 shares offloaded by ARK Next Generational Internet ETF (ARKW) in two selloffs. The sale saw the GBTC shares dumped by ARKW exceed 800,000 since October.
On Friday, the ARKW sold another 102,672 GBTC shares valued at $3.6 million. It appears Wood’s Ark Invest seeks to profit in the recent rally of GBTC price, which rose by 4.73% on Friday to exchange hands at $36.23. The move aligned with the target weighting, given that GBTC shares accounted for 8.33% of the fund’s holdings.
Wood’s firm closed the week with an active sale as ARK Fintech Innovation ETF (ARKF) offloaded 37,151 Robinhood Markets stock (HOOD). The sale of HOOD shares marks a rare activity in the past two months following continuous purchases in anticipation of the bullish performance.
The accumulation of HOOD shares paid off as the price rose 2.18% on Friday at $11.73. The shrewd investment in HOOD shares crowns Cathie Wood’s approach as the price weekly pump hit 24% and 48% in its 30-day run.
Ark Invest is likely to sustain bargain hunting, which has been the trend following its recent offloads.
Editorial credit: viewimage / Shutterstock.com
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