This sum is ARK’s biggest sale of Coinbase shares since the week ending February 16.
ARK Invest’s goal is to have no one holding more than a 10% proportion of an ETF’s value.
In the week ending March 8, Cathie Wood led ARK Invest sold more than 580,000 shares of Coinbase (COIN), a cryptocurrency exchange, for a total of $149.85 million, as the stock closed at $256.62 on Friday.
Three of ARK’s exchange-traded funds (ETFs)—Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF)—sold COIN shares.
Banking on the Recent Surge
This sum is ARK’s biggest sale of Coinbase shares since the week ending February 16, when the company sold shares valued at $151 million. Since July 2023, it is the second-highest weekly total as well.
Such massive sell-offs are required when an asset’s value soars since ARK Invest’s goal is to have no one holding more than a 10% proportion of an ETF’s value. Along with a 50% gain in the price of bitcoin (BTC) over the last month, the value of Coinbase shares has climbed by more than 80%.
With COIN’s weighting across all three ETFs still well over 10%, ARK could possibly opt for further sales, especially with BTC setting a fresh record high over $72,000.
Despite investors’ elation at Bitcoin’s price increase, the Coinbase trading platform has been underwhelming. Coinbase has announced yet another outage on March 9 as Bitcoin reaches a new all-time high (ATH). Three disruptions have occurred on the cryptocurrency exchange in the last two weeks.
According to Coinbase users, the platform went down and caused a lot of problems. An overwhelming amount of problem complaints have been sent in recent times, according to data from Downdetector.