Coinbase, one of the leading cryptocurrency exchanges, has seen its stock reach a 52-week high. However, ARK Invest, the investment management firm headed by Bitcoin bull Cathie Wood, has chosen to sell off some of its shares in the crypto exchange.
ARK Invest had previously acquired a significant number of Coinbase shares during the bear market. But now, the firm has made the decision to divest a portion of its holdings for the second time this week. In the meantime, Wood’s company is actively investing in other technology firms, including Meta Platforms and Robinhood Markets.
On July 14, ARK Invest sold a total of 478,356 Coinbase shares valued at $53 million, coinciding with the stock’s yearly high of $114.43. The transactions involved Wood’s flagship fund, the ARK Innovation ETF, which sold 263,247 shares, the ARK Next Generation Internet ETF, which sold 93,227 shares, and the ARK Fintech Innovation ETF, which offloaded 35,666 shares.
In June, Wood’s company made a purchase of Meta Platforms shares after the announcement of the launch of Threads, a social media app similar to Twitter. The ARK Innovation ETF acquired 69,793 Meta shares, while the ARK Fintech Innovation ETF bought 111,843 shares of Robinhood. Additionally, the ARK Next Generation Internet ETF increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares.
Coinbase’s stock closed at $105.31 on Friday, experiencing a 1.58% decline as investors secured their profits. However, throughout the week, the price had surged by 33%, reaching a 24-hour high of $114.43. This represents a year-to-date increase of 213%. The rise in Coinbase’s stock can also be attributed to the positive outcome of the United States Securities and Exchange Commission vs. Ripple lawsuit.
This is not the first time that ARK Invest has sold Coinbase shares. On July 11, Wood’s ARK Innovation ETF sold 135,152 shares worth $12 million. Additionally, the ARK Fintech Innovation ETF sold 160,887 Coinbase shares in March.
Despite the reduction in Coinbase shares, ARK Invest continues to make strategic investment decisions in the technology sector. Wood’s firm recognizes the potential in companies like Meta Platforms and Robinhood, both of which have been gaining popularity in recent times.
As the cryptocurrency industry continues to evolve and gain mainstream acceptance, investors like ARK Invest are carefully navigating the market to capitalize on opportunities while managing risk. With the sale of Coinbase shares and the investment in other promising technology firms, Wood and her team are positioning themselves to stay ahead in the ever-changing landscape of digital assets.