ARK Invest, led by Cathie Wood, has sold an additional 43,956 shares of Coinbase, amounting to about $5.2 million, as Coinbase hits an 18-month high.
The surge in Coinbase’s stock is occurring amid the controversies surrounding Binance and its CEO, Changpeng “CZ” Zhao.
Coinbase’s shares reached $119.77 on November 27, the highest since May 5, 2022, following Binance’s agreement to pay a $4.3 billion fine, coupled with CZ’s resignation.
In response to Coinbase’s notable price increase, ARK Invest has been systematically selling Coinbase shares throughout 2023. In July, they sold $103 million worth of COIN shares when the price was around $90.
Additionally, ARK has divested Grayscale Bitcoin Trust (GBTC) shares, selling off 94,624 GBTC shares on November 24.
Eric Balchunas, Bloomberg’s chief ETF analyst, clarified that ARK’s sale of GBTC does not reflect a lack of bullish sentiment on Bitcoin.
He explained that ARK needed to sell shares to maintain a roughly 9% weighting, and even with the selling, their Bitcoin-related asset allocation has increased.
Despite the current divestment of Coinbase shares, ARK Invest did acquire 420,000 COIN shares in June, shortly after the SEC filed a lawsuit against the exchange.
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