Ark Invest Sells $3.9M Coinbase Shares, Keeps $110M in Holdings

• Ark Invest sold 13,780 Coinbase shares amid market volatility triggered by Jerome Powell’s hawkish speech.
• Ark retains $110M in Coinbase shares, making up 9.9% of its ARKF portfolio, reflecting its risk management strategy.

Cathie Wood’s Ark Invest has sold 13,780 shares of Coinbase Global Inc. (COIN) for approximately $3.9 million. This action followed increased market volatility in response to a hawkish speech given by Federal Reserve Chair Jerome Powell.

Powell’s cautious approach on future interest rate decreases echoed throughout financial markets and caused notable sell-offs in many different areas. The stock price of Coinbase showed this sentiment; it dropped 10% to settle at $279.86. Still, COIN is up an amazing 61% year-to-date despite this fall.

ARK SLASHES COIN — $3.9M SOLD AS COINBASE SLIDES

Cathie Wood’s Ark dumped 13,780 COIN shares as Powell’s hawkish speech slammed markets; COIN closed $279.86, down 10% but up 61% YTD; ARKF keeps $110M COIN—now 9.9% of holdings.

Fed spooked markets, Bitcoin hit $100K before… pic.twitter.com/uL284vUVGh

— Mario Nawfal’s Roundtable (@RoundtableSpace) December 19, 2024

Ark Invest and Strategic Risk Management Approach

Through its ARK Fintech Innovation ETF (ARKF), which has kept $110 million worth of COIN shares, Ark Invest carried out their deal.

Now making up 9.9% of the ETF’s whole portfolio, these holdings represent the highest degree of diversity allowed under Ark’s approach. The company’s choice to reduce its position shows its will to keep equilibrium and lower risk inside its resources.

Especially, this is not the first time Ark Invest changed its Coinbase stance in reaction to changes in the markets. The company made selective sales under periods of notable stock price increases earlier in the year.

The fund’s most recent action seems to fit this trend since it locks in gains by using COIN’s excellent performance all year long to adjust to changing market conditions.

This strategy emphasizes the proactive investment management technique of the company, especially in an unpredictable economic climate defined by uncertainties about monetary policy.

Though it is still vulnerable to more market turbulence, COIN’s stock price has steadied somewhat as of writing, at $273.92.

The intraday performance of the stock emphasizes the difficulties companies negotiating this unpredictable economic environment confront, with changes motivated by both macroeconomic events and sector-specific developments led by both macroeconomic concerns and sector-specific developments.

Previously, in January, CNF also highlighted that Ark Invest offloaded COIN shares worth $30 million in just a few days.