Coinbase (COIN) shares from two of its exchange-traded funds (ETFs) were sold for more than $25 million on Wednesday by Cathie Wood’s ARK Invest.
166,183 COIN shares, valued at $25.3 million at the closing price of the cryptocurrency exchange, were sold by the investment business from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW).
As the market became overheated, a leverage flush caused bitcoin to plummet, and Coinbase’s Nasdaq-listed shares sank 2.96% to $152.24 on Wednesday.
The target weighting of ARK’s ETFs ensures that no single position surpasses 10% of the fund’s overall value. After more than doubling in value in the final three months of 2023, COIN has continuously maintained above that level in both ARKK and ARKW, prompting Cathie Wood’s company to regularly sell the cryptocurrency exchange’s stock.