ARK Invest, Cathie Wood’s investment manager, sold more than 580,000 Coinbase (COIN) shares during the week that concluded on March 8. At Friday’s closing price of $256.62, those sales were valued at $149.85 million.
Three of ARK’s exchange-traded funds (ETFs)—the Innovation ETF (ARKK), the Next Generation Internet ETF (ARKW), and the Fintech Innovation ETF (ARKF)—were sold out of COIN shares.
The amount is the biggest selling of Coinbase stock by ARK since shares valued at $151 million were sold during the week ending on February 16. Not since July 2023 has the weekly total been this high.
When an asset appreciates in value, such huge sell-offs become essential because ARK Invest strives to have no single holding exceed a 10% weighting of an ETF’s value.
Due to an almost 50% increase in the price of bitcoin (BTC) within the same period, Coinbase shares have seen an increase in value of over 80%.
Further sales by ARK are likely given that COIN’s weighting across the three ETFs is still comfortably above10%, especially in light of the fact that BTC recently reached a new all-time high above $70,000. In pre-market trading, Coinbase is currently up 5.6% at $271.