Investment firm Ark Invest recently sold a portion of its shares in cryptocurrency exchange Coinbase, for a total of almost $12 million. The move comes as Coinbase's share price has been on the rise this year, and despite the company's key partnerships.
A major investor reduces its stake
Ark Invest, run by Cathie Wood, is known as a keen supporter of cryptocurrencies and disruptive technologies in general. In particular, the company manages several exchange-traded funds (ETFs), one of which, the Ark Innovation ETF, until recently held a significant proportion of Coinbase shares.
However, on 11 July 2023, Ark Invest sold 135,512 Coinbase shares, representing a total value of around $12 million. This was a surprising move, given the positive performance of the COIN share and the key partnerships forged by the exchange platform recently.
Solid performance for Coinbase shares
Since the beginning of the year, the COIN share has risen by 150%, while the Ark Innovation ETF has grown by 51%. In addition, COIN shares have outperformed the Nasdaq 100 index, which is up 38%, and the S&P 500, which is up 16%.
One reason for the rise in COIN's share price is that five investment firms have recently appointed Coinbase as their market surveillance partner, as part of their applications for authorisation of Bitcoin cash ETFs. And despite the US Securities and Exchange Commission's legal action against Coinbase, the exchange's share price continues to soar.
Why did Ark Invest sell?
It is not yet clear why Ark Invest has decided to sell some of its Coinbase shares. However, it should be noted that this is not the first sale of COIN shares by the investment company. Ark Innovation ETF had already sold Coinbase shares last July.
Some speculation suggests that this decision could be linked to a desire to take profits following the rise in the share price, or to diversify the Ark Innovation ETF portfolio.
Still an important position in Coinbase
Despite this sale, it is important to note that Ark Invest still holds a significant stake in Coinbase. In addition, Cathie Wood and her team continue to actively support the growth and development of the blockchain ecosystem and cryptocurrencies in general.
- Ark Invest sold 135,512 Coinbase shares for a total of approximately $12 million.
- COIN shares have risen by 150% since the start of the year.
- Five investment firms have appointed Coinbase as market surveillance partner for their Bitcoin cash ETFs.
Ark Invest's recent sale of $12 million worth of Coinbase shares raises questions about the motives behind and potential impact on the exchange platform. Nevertheless, it is clear that investors continue to believe in the future of Coinbase and cryptocurrencies in general, as evidenced by the steady rise in COIN's share price.
