- ARK Invest has been reducing its Coinbase holdings, selling 12,077 shares valued at $2.7 million recently.
- This sell-off is part of a larger trend with ARK selling substantial amounts of Coinbase stock since March.
- Coinbase stock performance closely mirrors Bitcoin’s market movements, reflecting broader cryptocurrency market trends.
ARK Invest, a prominent investment firm, has recently stepped up the liquidation of its holdings in Coinbase stock amid a lag in Bitcoin’s price surge beyond the $70,000 threshold. This decision marks a significant move for the firm, which had previously held off from large-scale sales of its Coinbase investments earlier in the year.
Recent Sales and Market Impact
On July 31, ARK’s Next Generation Internet ETF (ARKW) offloaded 12,077 shares of Coinbase, totaling approximately $2.7 million based on the closing price of $224 per share that day. This follows a similar action on July 19, when ARKW sold 16,758 shares for about $4.3 million at a trading price of around $257 per share. These sales are part of a continuing trend of ARK reducing its exposure to Coinbase, having significantly decreased its holdings since a series of sales starting in March 2024.
Strategic Reductions
Before these substantial transactions, ARK’s strategy involved smaller, less frequent sales of Coinbase stock. For instance, on July 15, ARK’s Fintech Innovation ETF sold only 1,895 shares, amounting to around $477,000. This cautious approach changed notably following Bitcoin’s failure to reach the $70,000 mark in recent trading sessions, despite nearing $68,000 on July 27.
The ongoing sales by ARK come at a time when the correlation between Coinbase’s stock performance and Bitcoin’s market price is particularly pronounced, reflecting the broader health of the cryptocurrency market. Coinbase and Bitcoin have shown parallel trends over the past year, with both seeing substantial gains, though these have recently plateaued.
