Cathie Wood's ARK Invest has recently sold a significant number of Coinbase shares, demonstrating a shift in their investment strategy. On January 5, the cryptocurrency exchange opened trading at $152.67 and closed at $153.98, prompting ARK Invest to divest 133,823 shares.

This divestment, according to Cointelegraph, included the sale of 107,151 Coinbase shares from their ARK Innovation ETF (ARKK), 15,892 from their ARK Next Generation Internet ETF (ARKW), and 10,780 from their ARK Fintech Innovation ETF (ARKF).

Continued Divestment of Coinbase Shares and Implications

The recent sale of Coinbase shares amounted to approximately $20.6 million, with the stock price hovering around $153.98, per TradingView. Additionally, ARK Invest made several noteworthy changes to its portfolio. They reduced their holdings in Stratasys while increasing their positions in Palantir Technologies and Iridium Communications. This strategic repositioning reflects ARK's focus on identifying promising opportunities in the market.

The divestment of Coinbase shares did not stop with the recent sell-off. On January 3, ARK Invest sold 166,000 shares worth around $25 million, following a 237,000 sell-off on December 5, 2023. ARK Invest generated approximately $78 million from selling Coinbase shares in December and January alone. However, despite these divestments, ARK Invest still holds many Coinbase shares.

Coinbase remains a crucial asset in ARK's ETFs, with significant holdings across different funds. In the ARKK ETF, Coinbase represents 10.04% of the portfolio, while in the ARKW and ARKF ETFs, it accounts for 10.37% and 13.41%, respectively. This indicates ARK's ongoing confidence in Coinbase's long-term growth potential.

Waiting for SEC's BTC ETF Approval

The crypto community eagerly awaits the United States Securities and Exchange Commission's (SEC) decision regarding the approval of the first spot Bitcoin exchange-traded fund (ETF) available for U.S. investors. ARK Invest and 13 other companies have filed for a spot BTC ETF with the SEC. Their spot Bitcoin ETF, ARK 21Shares, developed in collaboration with Swiss firm 21Shares, offers cryptocurrency exchange-traded products.

ARK and 21Shares were the first to submit updates to their spot Bitcoin ETF filing ahead of the SEC's December 29 deadline. On January 4, the ARK 21Shares Bitcoin ETF filed a registration notice with the SEC. The SEC has until January 10 to approve or deny the ETF application.

Photo: Ark Invest Newsroom