Ark Invest Strategic Moves: Selling Coinbase and GBTC Shares, Accumulating Block Stock

Ark Invest Strategic Moves: Selling Coinbase and GBTC Shares, Accumulating Block Stock

Crypto News – Ark Invest, a key player in the application for a spot Bitcoin ETF in the U.S., has been actively reducing its stake in Coinbase. The investment firm, under Cathie Wood’s leadership, continued this trend by offloading an additional 149,780 Coinbase (COIN) shares, valued at $24.2 million, from two of its ETFs, as COIN’s stock soared to new annual peaks. The transaction consisted of 132,782 shares from the Innovation ETF and 16,998 shares from the Next Generation Internet ETF, aligning with Ark’s strategy to adjust its fund compositions in response to the recent price rally of COIN.

This move follows the firm’s sale of $5.5 million worth of Coinbase stock earlier in the week. In total, Ark has liquidated over $200 million in Coinbase shares over the last month. Notably, despite the stock’s recent high, it closed at $161.86 on the day of the latest sale, still markedly below its all-time high of around $343 set in November 2021.

In a separate development, Ark Invest sold approximately $59 million in Coinbase shares last week. This divestment included 18,962 COIN shares and was part of a broader strategy to capitalize on the stock’s recent surge. The sales were spread across its various ETFs: 12,142 shares from the Innovation ETF, 2,278 from the Next Generation Internet ETF, and 4,542 from the Fintech Innovation ETF. This marked a continuation of the week’s earlier sales, totaling $58.8 million in Coinbase shares.

In addition to Coinbase, Ark has been reducing its position in Grayscale Bitcoin Trust (GBTC). The largest transaction recently was the sale of 809,441 GBTC shares from its ARKW ETF, totaling $27.6 million – the biggest in over a year. This sale was part of a larger pattern of divestments totaling $14.9 million in GBTC shares the previous week.

Ark Invest Balances Portfolio: Reduces GBTC Holdings Amidst NAV Discount Decline, Boosts Stake in Fintech Firm Block

Ark Invest’s GBTC sales coincide with a significant decrease in the trust’s discount to its net asset value (NAV), which has dropped from over 40% to approximately 7.6%. The price movements of GBTC have paralleled the recent surge in Bitcoin’s value.

Concurrently, Ark has been increasing its investment in Block, a financial services company co-founded by Jack Dorsey. On December 18, Ark allocated an additional 347,692 Block shares to its ARKW ETF, worth $25.7 million. This aggressive buying strategy has seen Block’s stock nearing the top of ARKW’s asset list, with a current market value of $116.9 billion.

Through these strategic moves, Ark Invest is continually adjusting its portfolio, balancing between divesting from established cryptocurrency-related stocks and investing in emerging fintech players.