ARK Invest, a firm actively pursuing the launch of a spot Bitcoin exchange-traded fund (ETF) in 2024, has continued to capitalize on the profits from its significant holdings of Coinbase stock. On December 5, ARK executed a substantial sale of 237,572 Coinbase shares across its three funds, generating a minimum of $33 million. The sale coincided with Coinbase’s stock closing at $140 per share.
The breakdown of the Coinbase share sale included 201,711 shares from the ARK Innovation ETF (ARKK), 28,535 shares from the ARK Fintech Innovation ETF (ARKF), and 7,326 shares from the ARK Next Generation Internet ETF (ARKW).
Coinbase’s stock has experienced a remarkable year-to-date surge of 280%, buoyed by the bullish crypto market. The company’s shares saw renewed momentum following the legal developments involving rival exchange Binance and its former CEO Changpeng Zhao, who pleaded guilty to money laundering and sanctions violations in the United States in November.
On December 5, Coinbase’s stock reached a new yearly high above $147.4, a level not seen since April 2022. The stock has recorded an almost 70% increase over the past 30 days.
Despite the recent divestment in Coinbase shares, ARK Invest still holds a significant stake in the exchange. Coinbase remains the most substantial asset in the portfolio of the ARKF ETF, constituting over 13% of its net assets with a value of nearly $135 million as of December 5. Additionally, Coinbase represents 11.72% and 11.64% of the ARKW ETF and the ARKK ETF, respectively, making it the largest asset in both funds.
While actively selling Coinbase shares, ARK Invest has been involved in acquiring shares of other crypto-related stocks, including Robinhood. The firm has also continued to purchase shares of SoFi Technologies, even after the company announced the impending termination of its crypto trading services.