Cathie Wood's Ark Investment Management began selling Coinbase shares for the first time on Tuesday, which it has collected for almost a year. The Ark Innovation ETF sold 135,152 shares of Coinbase on Tuesday.
Wood's Firm Has Been Buying Coinbase Shares In The Drops Since July 2022
Wood's flagship Ark Innovation ETF sold 135,152 shares of the cryptocurrency exchange operator on Tuesday, its first since July 26, according to data from Ark Investment Management LLC.
Ark is Coinbase's fourth-largest owner and had been buying stocks in price drops for about 11 months until June.
U.S. regulatory pressure on the industry continued to increase its stake during the crypto market volatility triggered by issues like the collapse of Sam Bankman-Fried's empire and a string of bankruptcies.
Ark slashed its stake in Coinbase on a day where the stock rose 9.8% after a Chicago Board Options Exchange filing added to the optimism about the potential US approval of a Bitcoin ETF.
While Wood's fund remains a major shareholder, his reduction in stake could signal to other investors the possibility of some profit after the stock's rally this year.
Although Coinbase is facing a lawsuit by the Securities and Exchange Commission, it has risen more than 150% this year in line with a wider jump in cryptocurrency-linked stocks. It had lost 86% of its value last year.
Wood's flagship fund is up 51% this year, compared to 38% in the Nasdaq 100 and 16% in the S&P 500. The Ark Innovation ETF, on the other hand, fell 67% last year.
*Not investment advice.
