Bitcoin bull Cathie Wood’s ARK Invest continued its selling streak of Coinbase (COIN) shares for a third consecutive day, selling a total of 82,255 shares worth approximately $11.5 million. The move comes as Coinbase shares remain resilient, hovering around 5% from yearly highs despite the investment management firm’s continued liquidations.
Bitcoin bull Wood’s company Ark Invest is in a persistent selling trend
Central St. ARK Invest, based in St. Petersburg, Florida, has steadily reduced its stake in Coinbase throughout this month, losing more than $120 million worth of shares based on closing prices. The latest transaction involved the sale of 65,297 COIN shares, equivalent to $9.1 million, from the ARK Innovation (ARKK) ETF. Additionally, 15,502 shares worth $2.2 million were sold from the ARK Next Generation Internet (ARKW) ETF, and 1,456 shares worth $203,000 from the ARK Fintech Innovation (ARKF) ETF.
Coinbase’s stock rally fueled by Bitcoin’s (BTC) bullish move has seen remarkable growth; BTC has gained nearly 150% this year, with its value nearly quadrupling. ARK Invest’s selling spree is in line with its policy of ensuring that any company it holds has a maximum weighting of 10%. Despite these continued divestitures, Coinbase’s weighting in the three ETFs remains above the stated level, indicating the asset’s continued strong performance.
The importance of rebalancing portfolios
The latest round of sales follows a $1.9 million sale on Monday and a significant $100 million sale of Coinbase shares the previous week. ARK Invest’s strategic move to rebalance fund weights is evident in these sequential selloffs, underscoring the importance of maintaining a diversified portfolio in the dynamic cryptocurrency market.
Latest situation in COIN
As of Tuesday’s market close, Coinbase traded at $139.62, reflecting a marginal 2% decline over the past five days. Despite this short-term decline, the stock is up nearly 50% for the month. According to data on the markets’ data dashboard, Coinbase’s current valuation stands at $26 billion. However, it is important to highlight that the stock remains more than 60% below its all-time high of $342.98, set during the peak of the last crypto bull market in November 2021.
As ARK Invest continues to navigate the evolving crypto world, its strategic decisions regarding Coinbase shares shed light on the complexities of managing a diversified portfolio amid dynamic fluctuations in the cryptocurrency market. Investors will closely monitor the firm’s future moves as it adapts to market dynamics and seeks optimal fund allocation.
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