Coinbase Stock Sell-off ARK Invest Sells Big Shared of Coinbase, Nearing $200M

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In a dynamic display of investment strategy, ARK Invest, led by Cathie Wood, made significant moves in December, particularly with its holdings in Coinbase (COIN). The investment firm, known for its forward-thinking approach, continued its sell-off of COIN shares, accumulating sales totaling a notable $196.8 million amidst a robust 30% rally since late November.

Why ARK Invest Sold Coinbase Shares

While COIN’s value soared, ARK Investment opted for a strategic reduction in its exposure, aligning with its policy to cap individual company holdings at approximately 10% of its overall portfolio.

ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) collectively shed 149,780 COIN shares, signaling a calculated approach to managing risk and maintaining a diversified portfolio. Meanwhile, the combined value of these sales reached $24 million at Wednesday’s closing price.

ARK Invest’s Other Smart Moves

In another strategic move, ARK Next Generation Internet ETF (ARKW) divested a significant portion of its holdings in the Grayscale Bitcoin Trust (GBTC), reducing its position by 398,383 shares. 

At the same time, they bought more shares (158,334 to be exact) in Block (SQ). Block is a company that lets you make payments with cryptocurrency using its Cash App. They also recently launched a new Bitcoin wallet that you control yourself.

Even though the price difference of GBTC (Grayscale Bitcoin Trust) compared to its actual value increased a bit by 0.33% on Wednesday, reaching 7.9%, it’s still lower than the 12.5% it was at earlier this month. This difference is the smallest it’s been since August 2021, as per data from Ycharts.