Cathie Wood’s ARK Liquidates $2.7 Million in Coinbase Shares Amid Bitcoin’s Struggles

Cathie Wood’s investment firm, ARK, has resumed its strategy of selling shares of Coinbase as the price of Bitcoin has not successfully tested the $70,000 mark recently.

Details of the Latest Sell-off

ARK Invest, known as one of the ten issuers of spot Bitcoin exchange-traded funds (ETFs) in the United States, has taken the opportunity to profit from its Coinbase holdings amidst Bitcoin’s inability to breach the $70,000 threshold.

On July 31, ARK Next Generation Internet ETF (ARKW) divested 12,077 shares of Coinbase (COIN), which was valued at approximately $2.7 million at the time of the sale, as COIN closed at $224.

Sales Activity Overview

This latest Coinbase sale follows a previous transaction on July 19, where ARK sold 16,758 COIN shares for roughly $4.3 million at a price of approximately $257.

Prior to these recent transactions, ARK had maintained a conservative approach in regard to selling Coinbase stock, offloading smaller quantities, such as:

• On July 15, 1,895 COIN shares from its ARK Fintech Innovation ETF, valued at about $477,000.
• Other sales during the summer season did not surpass 4,000 shares at any single transaction.

In contrast, the most substantial sale occurred on May 8, with ARK selling 41,964 COIN shares at a rate of $210 per share.

Market Context and Bitcoin Prices

Coinbase, being a significant player in the cryptocurrency ecosystem, tends to reflect the overall sentiment in the Bitcoin market. Bitcoin and Coinbase have shown remarkable correlation, with their returns over the last year recorded at 134% and 123%, respectively.

The recent Coinbase sales from ARK occurred during a period of stagnation for Bitcoin, which has struggled to reach $70,000. On July 27, Bitcoin had only managed to surpass $68,000.

ARK’s notable sales in the past coincided with Bitcoin’s record highs above $70,000 in March. This peak was reached against a backdrop of significant market enthusiasm linked to the launch of spot Bitcoin ETFs in the U.S. around January 2024.