Renowned Bitcoin advocate Cathie Wood’s investment firm is reportedly selling off its Coinbase holdings, with $30 million worth of COIN shares disposed of in recent days. This move has led to speculation that Wood is anticipating a “sell the news” event following the approval of a Bitcoin spot ETF, which she has been vocal in supporting and expects to be approved soon.
Ark Invest, the firm Wood founded in 2014, which once managed over $50 billion in assets, has sold over $25 million in COIN shares from two of its exchange-traded funds (ETFs). The firm’s Innovation ETF, known as ARKK, offloaded over 145,000 shares, while the ARK Next Generation Internet ETF, known as ARKW, disposed of just over 21,000 shares, cumulatively worth $25.3 million.
These sales follow a series of similar moves by Ark Invest. On January 2, the company sold 3,360 shares worth just under $600,000. The company then sold 26,743 shares worth $4 million on January 4 and a further 113,000 shares on January 5 for $20 million.
Since December 28, when Wood began selling off her holdings in crypto entities, the share price of Coinbase has dipped from $187 to $154. This follows a significant price surge for Coinbase in 2023, which saw the stock price gain 400%, outperforming other headline-making companies like Nvidia, which gained 250%. This surge has been linked to speculation around the approval of a crypto spot ETF, with Coinbase acting as the custodian for significant traditional financial institutions offering the ETFs, including BlackRock.
While some believe Wood’s sales are due to anticipation of a BTC price drop following the ETF approval, Ark Invest maintains an investing principle that no single asset or holding should account for over 10% of the overall ETF. As a result, with the constant rise of Coinbase shares last year, the company had to sell off some of its COIN holdings to maintain this ratio.
However, Coinbase is not the only entity affected. Wood has also sold shares of the Grayscale Bitcoin Trust (GBTC), which could be one of the products approved to be turned into a Bitcoin spot ETF. Despite these sales, Ark Invest has shown its commitment to Bitcoin by reinvesting in the ProShares’ Bitcoin futures ETF (BITO). Analysts suggest this is a temporary move as the company awaits approval of its ETF applications.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Cathie Wood |
| Companies | Ark Invest, BlackRock, Grayscale Bitcoin Trust, Coinbase, ProShares |
| Currencies | Bitcoin |
| Securities | ARKW, COIN, ARKK, GBTC, BITO |
