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ARK Invest Sells Nearly $12M Worth of Coinbase Shares
Cathie Wood's ARK Innovation ETF sold almost $12 million worth of Coinbase shares after the exchange's latest stock market rally.
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ARK Innovation ETF sold more than 132,000 Coinbase (NASDAQ: COIN) shares worth around $11.8 million after the exchange’s stock rose on its potential role in the proposed launch of a Bitcoin exchange-traded fund (ETF). The sale accounted only for a small portion of ARK Invest’s COIN holdings as the asset manager remains one of the crypto exchange’s largest stakeholders.
ARK Bought Coinbase Stock Dip After SEC Lawsuit
Cathie Wood’s ARK Innovation ETF fund offloaded its shares in Coinbase Global, taking profits from the crypto exchange’s stock rally triggered by hopes over a potential launch of a Bitcoin ETF. The fund sold 132,152 Coinbase shares, a stake worth roughly $11.8 million at COIN’s closing price of $89.15 on July 11.
The move comes after shares of Coinbase popped almost 10% on Tuesday on the news that the proposed rollout of a Bitcoin ETF by Cboe BZX Exchange would include a surveillance-sharing deal with Coinbase. Cboe also made multiple filings with the US Securities and Exchange Commission (SEC) to list ARK’s own Bitcoin ETF, though the securities regulator rejected its attempts.
Meanwhile, the latest Coinbase stock surge brought the crypto exchange’s year-to-date gains to more than 165%.
ARK made a series of investments in COIN in 2023, even though the cryptocurrency exchange faces a lawsuit by SEC. ARK acquired over 400,000 Coinbase shares for $21.6 million after SEC’s action sent the stock tumbling on June 6.
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ARK Holds Around 11 Million COIN Shares Across All Funds
Apart from the company’s executives, ARK Invest, an asset management firm founded by Cathie Wood, is one of the largest Coinbase shareholders. The latest sale represents a small share of the fund’s total Coinbase stake, which accounted for over 8% of its assets as of July 12.
Across all of its funds, ARK Invest owns about 11 million Coinbase shares. The approximate cost average for the stock across ARK’s funds is $239.60 for the Ark Fintech Innovation ETF (ARKF), $254.65 for Ark’s ARK Innovation ETF (ARKK), and $242 for ARK Next Generation Internet ETF (ARKW).
In addition to COIN, the tech-oriented asset manager also holds considerable positions in Tesla, Roku, Square, Zoom, Shopify, and Nvidia.
Do you think ARK will continue adding to its Coinbase stake long-term? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
