Ark Invest Continues To Lose Weight On Coinbase Stock Worth $53 Million

Key Points:

• Ark Invest sells Coinbase shares at a 52-week high.
• Cathie Wood’s firm books profits while holding Meta Platforms and Robinhood shares.
• Coinbase stock price surges, prompting Ark Invest to sell and focus on other investments.

In a notable move, Ark Invest, the investment management firm led by prominent Bitcoin advocate Cathie Wood, has made strategic decisions regarding its holdings in Coinbase (COIN), Meta Platforms (META), and Robinhood Markets (HOOD). While Ark Invest has sold some of its Coinbase shares amid the stock’s surge to a 52-week high, the firm continues to hold shares in Meta Platforms and Robinhood.

According to data, Ark Invest sold 478,000 shares of Coinbase on July 14, amounting to approximately $53 million. This sale comes as Coinbase’s stock price reached a year-to-date high of $114.43. The Ark Innovation ETF (ARKK) sold 263,000 shares, the Ark Internet ETF (ARKW) sold 93,000 shares, and the Ark FinTech ETF (ARKF) sold 36,000 shares. This marks the second time this week that Ark Invest has offloaded its Coinbase holdings, having previously sold 135,000 shares on July 11.

Despite the recent sale, Coinbase’s stock has demonstrated substantial gains, surging 33% during the week and reaching a remarkable 213% increase year-to-date. However, on Friday, the stock closed at $105.31, experiencing a slight decline of 1.58% as investors opted to book profits. The surge in price was influenced by positive developments in the ongoing US SEC v. Ripple lawsuit, which had a positive impact on various crypto-related stocks.

On a different note, Ark Invest’s funds have been actively involved in other investments. The firm purchased shares of Meta Platforms and Robinhood. Notably, Ark Invest started acquiring Meta Platforms shares in June after the company announced the launch of its Twitter-like social media app called “Threads.” The ARK Innovation ETF acquired 69,793 shares of META, while the ARK Fintech Innovation ETF purchased 111,843 shares of Robinhood. The ARK Next Generation Internet ETF added 12,559 shares of META and 169,116 shares of Robinhood to its portfolio.

The closing price of META shares on Friday stood at $308.87, representing a nearly 5% increase for the week. On the other hand, Robinhood’s stock price witnessed a 13% surge during the week, closing at $12.38 on Friday.

Ark previously reduced its holdings in Coinbase on a day when the stock rose 9.8% following a Chicago Board Options Exchange filing, fueled speculation about the likely US approval of a Bitcoin ETF. Although remaining a significant shareholder, Wood’s fund’s reduction in holdings may convey to other investors the possibility of profiting from the share’s climb this year.

While Ark Invest has been accumulating Coinbase shares during periods of market volatility and regulatory challenges in the crypto industry, its recent decision to sell some of its holdings could signal an opportunity for investors to secure profits following the stock’s substantial rally this year. Despite regulatory scrutiny and legal battles faced by Coinbase, its stock has shown impressive growth, appreciating by over 150% year-to-date. Likewise, Ark Invest’s flagship fund has performed well, boasting a 51% gain in 2022, surpassing the gains of the Nasdaq 100 Index and the S&P 500. It is worth noting that the Ark Innovation ETF experienced a significant decline of 67% in 2021.

Ark Invest’s investment decisions, particularly regarding Coinbase, Meta Platforms, and Robinhood, reflect the firm’s active management approach and its strategy to navigate the ever-evolving landscape of the digital asset market. As the crypto industry continues to evolve, investors and market participants eagerly await further moves and insights from Cathie Wood and Ark Invest.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.