Cathie Wood’s Ark Invest Sells $13.5M in Coinbase Stock

Ark Invest's Strategic Move

Cathie Wood’s Ark Invest recently sold $13.5 million worth of Coinbase (COIN) stock, marking its first major sell-off since July 2022. The firm offloaded 160,887 shares of the cryptocurrency exchange, signaling the end of its buying spree that occurred during the "crypto winter."

Performance and Market Trends

COIN's performance in 2022 lagged behind major cryptocurrencies like Bitcoin and Ether, with an 86% decline over the year. Despite this, Coinbase's stock has shown some recovery, rising 11.78% recently to reach $83.99. Throughout the year, its price fluctuated between $31.55 and $206.79.

Recent Acquisitions

In March, Ark Invest had bolstered its Coinbase holdings by purchasing over 350,000 shares. This included allocations to its ARK Innovation ETF and ARK Next Generation Internet ETF, valued at $22 million.

Cryptocurrency Market Impact

The cryptocurrency market's upward trend has positively impacted companies like Coinbase, which relies heavily on transaction fees. Increased trading volumes typically accompany rising token prices, benefiting platforms like Coinbase.

Regulatory Challenges

Coinbase has been proactive amid heightened scrutiny from the SEC. The exchange has ceased support for Signet and is reportedly backing Circle’s USDC stablecoin with a substantial $3 billion bid. CEO Brian Armstrong remains vocal about regulatory relationships globally.

This significant sale underscores Ark Invest's strategic repositioning and the dynamic nature of the cryptocurrency market.