ARK Invest sells another $20.6 million worth of Coinbase shares
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ARK Invest sold another $20.6 million worth of Coinbase (COIN) shares across its three exchange-traded funds (ETFs).
Of the Coinbase shares sold by Cathie Wood Investments on January 5, 107,151 shares ($16.5 million) were from the Innovation ETF, 15,892 shares ($2.4 million) were from the Next Generation Internet ETF, and 10,780 shares (170 million) from the FinTech Innovation ETF.
Including the $25.3 million in COIN shares sold on December 3 and the $4.1 million sold on December 4, ARK Invest’s total Coinbase stock sales last week reached $50 million, even though the stock fell by about 10%.
This series of sales is a continuation of the firm’s strategy of maintaining a balanced portfolio, specifically avoiding any single stock exceeding 10% of the ETF’s total value.
Most of ARK’s Coinbase investments come from its ARKK fund, which holds more than $850 million in COIN. The latest reduction reduces ARKK’s COIN holdings to 10.04%, suggesting that ARK may soon cease further sales of the ETF unless Coinbase shares surge again.
The ARKW and ARKF ETFs have smaller holdings on Coinbase, but have slightly higher weightings of 10.37% and 13.41% respectively.
ARK’s strategy of rebalancing its fund’s weightings was also evident in December, when it sold $200 million worth of Coinbase stock after COIN’s price surged 40%.
As of Friday’s close, Coinbase shares were $153.98, down slightly by 1% on the day. Still, the stock is up an impressive 350% over the past year. However, it is still 55% below the all-time high of $342.98 reached during the peak of the cryptocurrency bull market in November 2021.
