ARK Invest, the investment firm led by Cathie Wood, sold another $20.6 million worth of Coinbase (COIN) shares. The sale in three exchange-traded funds (ETFs) appears to be a continuation of the firm's rebalancing strategy.
ARK Invest Continues Sales Ahead of ETF Approval with $20.6 Million Sale of Coinbase Shares
The firm offloaded a total of 133,823 COIN shares, closing last week at $153.98. This move is in line with ARK Invest's policy of not allowing any stock to exceed 10% of the ETF value.
Coinbase's stock price has more than doubled in the last three months of 2023, prompting a continued sale of the crypto exchange's shares by ARK Invest.
The firm's largest Coinbase stake is in the Innovation ETF (ARKK), which holds over $850 million in COIN.
The recent sell-off reduced ARKK's weight in Coinbase to 10.04%. This suggests that the sell-off from ARKK may be nearing its end unless there is another increase in Coinbase's share price.
ARK's Next Generation Internet (ARKW) and Fintech Innovation (ARKF) ETFs own fewer Coinbase shares than ARKK. However, Coinbase weights remain higher at 10.37% and 13.41% respectively.
This ongoing rebalancing of ARK Invest underscores the dynamic nature of ETF management, especially in the face of rapid price movements in the crypto market.
*This is not investment advice.