Coinbase (COIN): Why is Cathie Wood (ARK Invest) Selling?

Coinbase (COIN): Why is Cathie Wood (ARK Invest) Selling?

Profit selection in stages. Several months with a significant increase Bitcoin price (BTC) and crypto market, Cathie Wood and its fundsARK Invest approached the several “small” sales of COIN shares crypto-stock market Coinbase. Subscription history first profits to their vast holdings of these Nasdaq-listed stocks. And they were just sold by another kill: here it is Why.

Cathie Wood is selling another $50 million in COIN

Investment company funds ARK Invest of Cathie Wood he knew how to bet on stocks CORNER and on the fund GTC (Grayscale Bitcoin Trust) when the cryptocurrency market was to the lowestat the end of the year 2022.

Result with recent bull market on bitcoin and cryptocurrencies Cathie Wood funds continue take their profits, little by little, without haste. As noted by several crypto-media outlets, ARK Invest funds do expected a small bullish excess at the end of last week and have sold a little more COIN action than usual.

Indeed, Friday, December 8th AF to ARK Invest, which owns shares of Coinbase, sold the total 335 860 CORNER. With the closing price that day just above $146.5 per share, we can estimate selling around 49 million and a few dollars.

ARK Invest sold only a small fraction of its Coinbase shares

The three exchange-traded funds from ARK Invest that own COIN areInnovation ETF (hint ARKK), THE A new generation of ETFs (ARKW) in Fintech Innovation ETF (ARKF). And they don’t have much!

Indeed, with sharp rise Coinbase stock prices in recent months (and especially in recent weeks: +50% in 1 month!) these 3 funds saw the value of their COINs exceed share of 10% the value of all their assets.

So even after these recent sell-offs, the cryptocurrency platform still represents the stock 11% of the total value of the ARKK and ARKW ETFs and more 13 % from ARKF ETF. However, as the ARK Invest website itself explains (screenshot below), asset balancing policy wants these ETFs not to have a maximum weight just for another title 10%. Therefore, this need ” concessions ยป (besides taking the juicy profits).

The value of Coinbase's COINs has risen so much that Cathie Wood's ARK ETF has to sell them.

Here it is Why Cathie Wood’s Funds ‘Must’ Sell Some of Their COINs: Coinbase Shares Have ‘ too large a value “, Somehow! As for those who were worried about seeing these sales, so be it relievedit is by no means due to apprehension bears (bear) by Cathie Wood. Especially since these funds weigh between 1 billion dollars for the little ones (ARKF) and others 8 billion dollars for the biggest (ARKK), ARK Invest still certainly has more$1 billion in COINs under his management through his ETFs! As if he said it it’s not about $5 million in sales every now and then – or even $50 million (like today) – which will soon empty the ARK Invest ETF’s COIN reserves.

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