ARK Invest Coinbase Share Sale Takes December Total Close to $200M
December 23, 2023 | by stockcoin.net
Cathie Wood’s investment firm, ARK Invest, has continued to sell off its holdings of Coinbase (COIN) stock, bringing its total sales for December close to $200 million. The ARK Innovation exchange-traded fund (ARKK) sold 132,782 shares, while the ARK Next Generation Internet ETF (ARKW) got rid of 16,998 shares, amounting to $24 million based on Wednesday’s closing price. This sell-off comes as COIN shares have surged nearly 30% since the end of November. ARK Invest has a policy of limiting its exposure to individual companies to around 10% of its overall holdings, which is why it frequently reduces its holdings of Coinbase stock when prices rise. Despite the sales, COIN shares still remain above this maximum threshold in both the ARKK and ARKW funds. Additionally, ARKW also sold off some of its Grayscale Bitcoin Trust (GBTC) stock while increasing its holdings of Block shares.
ARK Invest Coinbase Share Sale Takes December Total Close to $200M
In a recent move, Cathie Wood’s investment firm ARK Invest has sold an additional $24 million worth of Coinbase shares (COIN). This brings the total sales of COIN shares in December to a staggering $196.8 million. The decision to sell off these shares comes as they have rallied almost 30% since the end of November.
The ARK Innovation exchange-traded fund (ARKK) led the sell-off, selling 132,782 COIN shares. The ARK Next Generation Internet ETF (ARKW) also participated, offloading 16,998 COIN shares. ARKW also sold a significant amount of Grayscale Bitcoin Trust (GBTC) shares, reducing its holding by 398,383.
ARK Invest has a policy of maintaining diversification by limiting exposure to individual companies. They aim to keep the exposure level to each company at around 10% of their holdings. However, COIN shares still remain above this maximum exposure level in both the ARKK and ARKW ETFs.
Despite the reduction in GBTC shares, the discount to net asset value for GBTC widened slightly to 7.9%. However, this is still significantly lower than the 12.5% it reached earlier this month. Meanwhile, Bitcoin experienced a rally of 3.3%, with its price crossing the $44,000 mark for the first time in 10 days.
Crypto Prices CoinDesk Market Index
Let’s take a look at the current prices of some major cryptocurrencies according to the CoinDesk Market Index:
- Bitcoin Price: $43,616.41
- Ethereum Price: $2,312.85
- Binance Coin Price: $269.06
- Solana Price: $91.47
- XRP Price: $0.62291202
- Cardano Price: $0.61520586
- Avalanche Price: $44.52
- Dogecoin Price: $0.09279826
- Polkadot Price: $7.93
- Tron Price: $0.10438931
- Chainlink Price: $15.19
- Toncoin Price: $2.31
These prices reflect the current market conditions and are subject to change.
ARK Innovation ETF and ARK Next Generation Internet ETF Sell COIN Shares
Both the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW) have participated in the sell-off of Coinbase (COIN) shares. ARKK sold a total of 132,782 shares, while ARKW sold 16,998 shares. This move is in line with ARK Invest’s strategy of reducing their holdings in individual companies to maintain diversification.
ARK Invest has consistently sold off COIN shares as the price has increased. This is due to their policy of limiting exposure to individual companies to around 10% of their overall holdings. COIN shares currently remain above this maximum exposure level in both ARKK and ARKW.
Firm Reduces Coinbase Holdings to Maintain Diversification
ARK Invest has a policy of maintaining diversification within their investment portfolios. To achieve this, they limit their exposure to individual companies. As a result, they have reduced their holdings of Coinbase (COIN) shares as the price has increased.
The decision to reduce Coinbase holdings comes as the shares have rallied almost 30% since the end of November. By selling off a portion of their COIN shares, ARK Invest aims to maintain their desired level of diversification and manage risk within their portfolios.
In December alone, ARK Invest has sold a total of $196.8 million worth of COIN shares, including the recent $24 million sale. This demonstrates their commitment to maintaining a balanced portfolio and adapting to market conditions.
COIN Remains Above Maximum Exposure Level in ARK ETFs
Despite the sell-off of Coinbase (COIN) shares by ARK Invest, the company’s holdings of COIN still remain above the maximum exposure level in both the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW).
ARK Invest has a policy of limiting exposure to individual companies to around 10% of their total holdings. However, due to the recent rally in COIN shares, they have exceeded this maximum exposure level. This is why they have been actively selling off COIN shares to rebalance their portfolios and maintain diversification.
Managing exposure to individual companies is crucial for managing risk and ensuring a well-diversified investment strategy. ARK Invest’s decision to sell off COIN shares reflects their commitment to maintaining their desired level of diversification and managing risk in their portfolios.
ARKW Also Sells Grayscale Bitcoin Trust (GBTC) Shares
In addition to selling Coinbase (COIN) shares, ARK Invest’s ARK Next Generation Internet ETF (ARKW) has also reduced its holdings of Grayscale Bitcoin Trust (GBTC) shares. ARKW sold 398,383 GBTC shares as part of its portfolio management strategy.
The decision to reduce GBTC holdings comes as the discount to net asset value widened slightly to 7.9%. However, this discount is still significantly lower than the 12.5% it reached earlier this month. Despite the discount, Bitcoin rallied 3.3% and crossed the $44,000 mark for the first time in 10 days.
ARKW’s decision to sell GBTC shares reflects their strategy of actively managing their portfolios to maintain diversification and manage risk. By reducing their GBTC holdings, they are rebalancing their portfolios and reallocating assets based on market conditions.
GBTC Discount Narrows, Bitcoin Rallies
After a slight widening, the discount to net asset value for Grayscale Bitcoin Trust (GBTC) shares has narrowed to 7.9%. This discount is the narrowest since August 2021 and significantly lower than the 12.5% it reached earlier this month.
Despite the narrowing discount, Bitcoin experienced a rally of 3.3%. The price of Bitcoin crossed the $44,000 mark for the first time in 10 days, signaling renewed bullish sentiment in the market.
The narrowing of the GBTC discount and the rally in Bitcoin’s price are indicative of positive market dynamics and investor confidence in the cryptocurrency space. These developments provide further evidence of the growing interest and adoption of digital assets.
Coinbase Approved as Virtual Asset Services Provider in France
Coinbase, one of the leading cryptocurrency exchanges, has been approved as a virtual asset services provider in France. This approval strengthens Coinbase’s position as a regulated platform and allows it to offer its services to customers in France.
Being approved as a virtual asset services provider is a significant milestone for Coinbase and demonstrates its commitment to complying with regulatory requirements. It also provides French customers with access to a trusted and regulated platform for buying, selling, and storing cryptocurrencies.
Coinbase’s approval in France highlights the increasing recognition and acceptance of cryptocurrencies by regulators and governments worldwide. It also reflects the growing importance of cryptocurrencies as a legitimate asset class.
Coinbase Lawsuit by SEC
Coinbase, the popular cryptocurrency exchange, is facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The details of the lawsuit have not been disclosed, but it represents a significant legal challenge for Coinbase.
The lawsuit by the SEC adds to the regulatory scrutiny faced by cryptocurrency exchanges and highlights the need for increased compliance and transparency in the industry. It is a reminder that regulatory compliance is crucial for the long-term success and legitimacy of cryptocurrency platforms.
Coinbase’s response to the lawsuit and its ability to navigate the legal process will be closely watched by the crypto community. The outcome of the lawsuit could have broader implications for the regulation of cryptocurrencies and the way exchanges operate in the future.