ARK Invest, an investment company led by Cathie Wood, made a significant move by selling $14.8 million worth of Coinbase (COIN) shares in a single day, marking the largest divestment since May 7. This sale of 69,069 COIN shares on Thursday surpassed the total sales made in June and July, which amounted to $2.88 million and $7.93 million, respectively.
The decision to sell off such a substantial amount of Coinbase shares came just before the exchange’s second-quarter earnings announcement. Despite beating revenue expectations set by Wall Street analysts, Coinbase reported lower profits than anticipated. Following the earnings report, the company’s shares experienced a brief rally after a 5.2% drop during regular trading hours, eventually stabilizing in pre-market trading.
ARK’s sale of COIN shares was spread across its Next Generation Internet ETF (ARKW) and Fintech Innovation ETF (ARKF). This strategic move was likely driven by the company’s exposure guidelines, which aim to prevent any single holding from making up more than 10% of an ETF’s total weighting. Currently, COIN accounts for 6.74% of ARKW and 9.69% of ARKF.
It is essential to note that CoinDesk, the source of this information, is a reputable media outlet covering the cryptocurrency industry. The publication follows strict editorial policies to ensure accuracy and reliability in its reporting. In November 2023, CoinDesk was acquired by the Bullish group, which also owns Bullish, a regulated digital assets exchange. Both companies have vested interests in blockchain and digital asset businesses, including significant holdings of assets like bitcoin.
Overall, ARK Invest’s decision to sell off a substantial amount of Coinbase shares highlights the ever-evolving nature of the cryptocurrency market and the strategic maneuvers made by investment firms to navigate this landscape effectively. As the industry continues to mature, investors and companies alike must stay nimble and adaptable to capitalize on opportunities and mitigate risks in this dynamic environment.