Ark Invest, the firm led by Cathie Wood, extends its trend of selling Coinbase shares, offloading another 133,823 shares valued at approximately $20.6 million last Friday. This move follows the $29 million COIN stock sell-off by Ark Invest just a few days ago.
In the latest trade filing from the firm, it was revealed that Ark Invest’s share sell-off reached $50 million in the past week. Out of these sales, 107,151 shares (equivalent to $16.5 million) belonged to its Innovation ETF, 15,892 shares ($2.4 million) to the Next Generation Internet ETF, and 10,780 shares to its Fintech Innovation ETF ($1.7 million).
Despite a 10% decline in Coinbase shares, Ark Invest continued adjusting the weightings of its funds. It’s worth noting that in December, the firm had already sold $200 million in Coinbase shares during a period when COIN’s price surged by over 40%.
Ark Invest Continues to Diversify Holdings
At the market close on Friday, Coinbase shares were trading at $153.98, marking a roughly 1% decrease for the day. While the shares experienced a notable 350% increase in the past year, they still remain 55% below their all-time high of $342.98 reached during the peak of the cryptocurrency bull market in November 2021.
These Ark Invest sell-offs are part of a broader strategy to adjust their fund weightings, aiming to diversify their holdings and effectively manage risks. However, it is interesting to note that several Bitcoin ETF issuers, including Ark Invest, BlackRock, Franklin Templeton, and Grayscale, chose Coinbase as their custodial service provider if their ETFs get approved by the U.S. Securities and Exchange Commission (SEC).
This dependence on Coinbase raised concerns about a lack of diversification and counterparty risk in the industry. In contrast, Fidelity and VanEck opted for a different approach, choosing self-custody and Gemini, respectively, for their funds.
