Ark Invest Continues to Trim Holdings in Coinbase (COIN) and GBTC

Ark Invest Continues to Trim Holdings in Coinbase (COIN) and GBTC

UTC by Benjamin Godfrey · 3 min read
Ark Invest Continues to Trim Holdings in Coinbase (COIN) and GBTC
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Amidst the sell-off, Ark Invest has strategically acquired 158,334 shares ($12.1 million) in Jack Dorsey’s Block Inc for its Next Generation Internet ETF. 

Ark Invest, a renowned asset management firm led by Cathie Wood, has been making strategic adjustments to its portfolio, most notably in its dealings with Coinbase Global Inc (NASDAQ: COIN) and Grayscale Bitcoin Trust (GBTC).

According to the company’s recent trade filing, Ark Invest sold additional tranches of Coinbase shares, offloading a total of 149,780 COIN ($24.2 million) from two of its funds as the stock reached new yearly highs.

Ark Invest Coinbase Sell-Off

Ark Invest’s decision to sell Coinbase shares aligns with its ongoing efforts to rebalance fund weightings in response to the recent surge in COIN’s price. On the specific details, the company sold 132,782 Coinbase shares valued at $21.5 million from its Innovation ETF and 16,998 shares worth $2.7 million from its Next Generation Internet ETF.

This follows a trend, as Ark Invest disposed of $5.5 million worth of Coinbase shares just a day earlier. In the past month alone, Ark Invest has offloaded over $200 million worth of Coinbase stock, demonstrating a shift in its investment strategy.

Coinbase’s recent performance has been impressive, with shares increasing by 60% over the past month and a staggering 344% jump year-to-date, according to TradingView. However, the stock remains over 50% below its all-time high set in November 2021.

Ark Invest’s recent moves also extended to Grayscale Bitcoin Trust, where the firm sold 398,383 GBTC shares ($14.3 million) from its Next Generation Internet fund. This followed a substantial divestment of approximately $12.85 million in GBTC shares on December 11, resulting in a reduction of ARKW’s GBTC holding to approximately $112.7 million, constituting a 6.95% weighting.

On Wednesday, GBTC shares closed at $35.83, reflecting a 2.6% daily increase, a 23% surge over the past month, and an impressive 336% year-to-date growth. Notably, GBTC’s price has risen alongside the surge in the underlying value of Bitcoin (BTC), which is currently trading around $44,187.

Markedly, Ark’s decision to sell GBTC shares could be influenced by the recent narrowing of GBTC’s discount to Net Asset Value (NAV), falling from over 40% in June to around 7.6% according to YCharts.

Ark Invest Increases Stake in Block

Amidst the sell-off, Ark Invest has strategically acquired 158,334 shares ($12.1 million) in Jack Dorsey’s Block Inc (NYSE: SQ) for its Next Generation Internet ETF.

This follows a $26 million purchase of Block shares earlier this week. Block shares closed at $76.11, registering a 1.6% daily decrease but reflecting a 31% increase over the past month and a 15% rise year-to-date. The move suggests Ark’s confidence in the growth potential of Block, especially after the company reported a 22% rise in Bitcoin gross profit for Q3. While it remains unclear whether Ark Invest will resume the accumulation of COIN later on, Block’s exposure still keeps the firm exposed to the crypto landscape.

As the crypto market continues to evolve, Cathie Wood’s Ark Invest remains at the forefront of adapting its holdings to seize opportunities and manage risks effectively.

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