Cathie Wood's Ark Invest takes profit on some of his buying Coinbase (COIN) over the past year, selling $12 million worth of stock as crypto exchange shares hit a yearly high , Coindesk reported.
Key Points to Remember
- Ark Invest sold 12 million shares of cryptocurrency exchange Coinbase.
- The investment manager has been an aggressive buyer of the company during the industry turmoil.
- Coinbase shrugged off regulatory pressures and hit new yearly highs.
The St. Petersburg-based company , Florida, sold 135,000 shares as the price crossed $92 per share in intraday trading yesterday.
Coinbase shares surged after the announcement of a possible supervisory sharing agreement for Bitcoin ETFs. Coinbase will partner with Cboe's BZX Exchange to share market data for at least three of its spot Bitcoin exchange-traded fund (ETF) applications.
The Securities and Exchange Commission (SEC) has pushed Bitcoin ETFs out of the spot market, saying the “fragmented and unregulated” spot market is prone to manipulation. The regulator has specifically welcomed the oversight sharing arrangements for ETFs backed by futures on the regulated futures exchange CME. The latest deals signed by Coinbase could ease the way to the first spot ETF, with investment giants such as BlackRock and Fidelity now in the running.
Recent sale represents only& #39;a very small portion of Ark Invest's holdings in Coinbase. Ark Invest, which focuses on disruptive technologies, holds just over 11 million COIN shares through three ETFs: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF ).
Coinbase stock is also 8, 25% of the overall weighting of its flagship fund ARKK ETF, just behind Tesla (TSLA) with 11.18%. It is the most weighted investment of the other two ETFs.
Wood's most recent purchase was for $12 million of Coinbase stock after it plummeted on news that the SEC was suing the company for operating an unregistered exchange. Coinbase has a year-to-date return of nearly 150%, despite battling regulatory uncertainty.
YCharts
The wood was a staunch supporter of Bitcoin, saying in the wake of FTX's collapse that it could hit $1 million by 2030. Standard Chartered Bank has reportedly raised its own profit target this week to 120 $000 by the end of 2024, citing an increase in per-coin rewards that takes the strain off miners' balance sheets.
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Source: investopedia.com
