Cathie Wood's ARK Invest Offloads $49.2M in Coinbase Shares

• ARK Invest Offloads Coinbase Shares
• Exchange-Traded Funds Involved in Sale
• Consistent Sales Amid Bitcoin's Rally
• Target Weighting for ETFs
• COIN's Presence in ARK's ETFs
• Additional Sales in Grayscale Bitcoin Trust

ARK Invest Offloads Coinbase Shares

ARK Invest, managed by Cathie Wood, announced a significant sale of an additional 335,860 shares in the cryptocurrency exchange, Coinbase (COIN) on Friday. This marks the largest sale since July.

Exchange-Traded Funds Involved in Sale

Shares of COIN were sold across three of ARK's exchange-traded funds (ETFs), with the majority coming from the Innovation ETF (ARKK). The sale, carried out at Coinbase's closing price, generated an estimated $49.2 million.

Consistent Sales Amid Bitcoin's Rally

The investment management company, based in St. Petersburg, FL, has been steadily selling Coinbase stock in the recent weeks. This action correlates with the appreciation of the exchange's shares in line with the ongoing bitcoin's rally. The recent sale is the most significant since July when ARK sold 480,000 shares, which were worth $50.5 million at that time.

Target Weighting for ETFs

ARK Invest practices a target weighting approach for its ETFs. This strategy means the weightings of the individual composite holdings neither fall below 2% of the fund's value nor exceed 10%. Due to the recent rally in COIN stock, which has reached its highest value since April 2022, its weighting in ARK's three ETFs has been well above the 10% mark.

COIN's Presence in ARK's ETFs

Despite recent sales, COIN still accounts for more than 11% of ARKK and the Next Generation ETF (ARKW), and over 13% of the Fintech Innovation ETF (ARKF). On Friday, COIN closed at $146.62, marking a 7.66% increase on the day.

Additional Sales in Grayscale Bitcoin Trust

In addition to COIN, ARK also sold 102,672 shares in the Grayscale Bitcoin$42,260 -0.64% Trust (GBTC), which amounted to approximately $3.6 million. GBTC represents 8.33% of ARKW.

Edited by Jonathan Stoker