{"id":470307,"date":"2024-01-06T02:57:27","date_gmt":"2024-01-06T02:57:27","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=470307"},"modified":"2024-01-06T02:57:27","modified_gmt":"2024-01-06T02:57:27","slug":"ark-invests-sells-holds-coinbase-shares-whats-going-on","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ark-invests-sells-holds-coinbase-shares-whats-going-on","title":{"rendered":"Ark Invest’s Sells, Holds Coinbase Shares: What’s Going on?"},"content":{"rendered":"

Ark Invest<\/a>, steered by the acclaimed Cathie Wood, recently executed a notable shift in its investment strategy, marked by the sale of an additional 26,743 shares of Coinbase Global Inc. This transaction, valued at approximately $4.1 million, occurred on Thursday, following a substantial sale of Coinbase shares worth $25.3 million the previous day. This pattern of sales highlights Ark Invest’s strategic adjustments within its portfolio, particularly in the context of the company’s ARK Innovation ETF (ARKK), which is known for its dynamic and forward-thinking investment approach.<\/p>\n

It also hints at the possibility of a major correction in Bitcoin<\/a>, despite all the ebullient enthusiasm that has grabbed the minds of the retail investors, due to the recent ETF hype. After all, smart money is usually on the right side of the trade.<\/p>\n

The ARKK has been actively involved in the market, not only offloading Coinbase shares<\/a> but also acquiring new stakes in other companies. Notably, on the same day as the latest Coinbase sale, the ETF invested in 132,955 shares of Recursion Pharmaceuticals, a transaction valued at around $1.48 million. These moves are part of a broader trend for Ark Invest’s ETFs, which have collectively divested over $200 million in Coinbase shares in recent weeks. Such significant sales underscore the active management style of Ark Invest and its willingness to adjust holdings in response to market dynamics and internal investment strategies.<\/p>\n

A Big Win for Coinbase and ARKK<\/h2>\n

Coinbase’s impressive rally<\/a> in the final three months of 2023, where its stock value soared by over 130%, significantly impacted its representation in the ARKK portfolio. This surge took Coinbase’s weighting in the ETF above the targeted maximum threshold of 10%. Despite the recent sales, Coinbase still forms a substantial part of ARKK’s investments, holding a 10.34% stake, which is valued at more than $872.5 million.<\/p>\n

The rise in Coinbase’s stock<\/a>, which closed up 2.21% at $155.6 on Thursday, reflects a broader trend of over 360% growth over the past year. This growth trajectory has been influenced by several factors, including the company’s decision to align with regulatory guidelines in the UK, requiring its users to complete a risk-acknowledgment form. Such compliance measures are part of Coinbase’s broader strategy to maintain a secure, reliable, and compliant platform for cryptocurrency trading, as emphasized by CEO Brian Armstrong.<\/p>\n

In addition to Coinbase, Ark Invest has a significant portion of its portfolio, more than 15%, invested in Coinbase Global and UiPath. Cathie Wood, the visionary behind Ark Invest, has gained recognition for her unconventional approach to asset management, focusing on long-term capital appreciation through investments in disruptive technology firms. Ark’s portfolio, which encompasses six thematic index funds, is heavily invested in areas such as automation, blockchain, fintech, and robotics, with a collective investment of $16.5 billion across 122 companies. The prominence of Coinbase Global and UiPath in Ark’s portfolio underscores the firm’s confidence in these companies’ potential for sustained growth and innovation.<\/p>\n

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What will 2024 bring for bitcoin? Expanded usage? Improved infrastructure? A spot bitcoin ETF? On a new Bitcoin Brainstorm, @bitcoinpark_<\/a>'s @bitkite<\/a>, ARK's @CathieDWood<\/a> and @yassineARK<\/a>, and leaders in the bitcoin space discuss all this and more. Listen! https:\/\/t.co\/vwdr5HdtaM<\/a><\/p>\n

— ARK Invest (@ARKInvest) January 5, 2024<\/a><\/p><\/blockquote>\n