Ark Invest Sells Millions of Dollars in Coinbase and GBTC Shares
In a surprising move, Ark Invest, led by renowned investor Cathie Wood, has sold significant shares of Coinbase and GBTC (Grayscale Bitcoin Trust) just as Bitcoin reached a new yearly high.
This unexpected sale involved the sale of 42,613 Coinbase shares and 100,739 GBTC shares. The sales were made through two of their ETFs, ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF. The total amount of sales amounted to approximately $5.8 million based on the closing prices of Coinbase and GBTC, which were $77.21 and $24.71 respectively.
This sale comes amidst a relatively significant increase in the cryptocurrency market, with Bitcoin surpassing the $35,000 mark overnight.
Curiously, Coinbase’s stock price has remained relatively stable over the past ten days, hovering around $77, contrary to its usual correlation with Bitcoin. This stability has raised questions about Coinbase’s resistance to follow the typical movements of the cryptocurrency market.
An Anticipated ‘Sell the News’ from Cathie Wood?
Ark Invest’s decision comes at a time of optimism surrounding the potential approval of Bitcoin ETFs. Recently, the US Court of Appeals ordered the Securities Exchange Commission (SEC) to reexamine Grayscale’s Bitcoin ETF application. It is worth noting that the SEC had previously rejected the application.
In addition, Ark Invest has also filed an application for a Bitcoin ETF in partnership with 21Shares. According to Samson Mow, as reported by CoinTelegraph, this may be one of the reasons why Ark Invest chose to sell some of its GBTC shares: “It makes sense for ARK to sell GBTC now as the premium diminishes and they have their own ETF filing pending.”
This sale raises questions about Ark Invest’s long-term investment strategy. Is it simply a portfolio adjustment or a sign of deeper changes in their perspective on the crypto market and ETFs?
