ARK Invest, the investment firm founded by Cathie Wood, has sold an additional $20.6 million worth of Coinbase (COIN) shares across three of its exchange-traded funds (ETFs). This move comes as part of ARK’s strategy to prevent any individual stock from surpassing a 10% weighting in its ETFs. The sale involved a total of 133,823 COIN shares, which closed last week at $153.98.
In the last quarter of 2023, the price of COIN more than doubled, leading to consistent sales of Coinbase shares by ARK. The firm’s Innovation ETF (ARKK) currently holds over $850 million worth of COIN, making it the largest weighting of Coinbase stock in ARK’s portfolio. However, with the latest offload, the weighting has been reduced to 10.04%. This suggests that the sales from ARKK could be coming to an end, unless there is another significant increase in Coinbase’s share price.
While ARKW and ARKF, ARK’s Next Generation Internet and Fintech Innovation ETFs, respectively, carry fewer Coinbase shares, their weightings remain higher at 10.37% and 13.41%. This indicates that ARK still has a significant stake in Coinbase through these ETFs.
It is worth noting that the U.S. Securities and Exchange Commission (SEC) is currently involved in disputes with both Coinbase and Binance. The SEC’s recent win in a case against Terraform may influence its approach to these ongoing disputes. However, it is unclear how this will impact ARK’s decision to sell Coinbase shares.
In summary, ARK Invest has sold $20.6 million worth of Coinbase shares, bringing its weighting in the Innovation ETF (ARKK) down to 10.04%. While the sales may be coming to an end for ARKK, ARKW and ARKF still hold significant stakes in Coinbase. The outcome of the SEC’s disputes with Coinbase and Binance could also play a role in ARK’s future actions regarding these shares.