- ARK Invest reduces Coinbase holdings by $25 million on January 3, part of a series of sales since December 2021 totaling over $225 million.
- The investment firm maintains interest in crypto but pivots from company stocks to Bitcoin ETFs.
- This shift implies ARK Invest's confidence in Bitcoin's long-term prospects, prioritizing it over Coinbase and Robinhood for 2024.
Over the past few weeks, ARK Invest, a leading investment firm, has been rapidly offloading its shares of Coinbase Global Inc., signaling a significant shift in their investment strategy. This year alone, the company has sold over $225 million worth of Coinbase shares since December 2021.
In a series of transactions, ARK Invest sold 166,183 COIN shares on January 3rd, totaling around $25.3 million, from its ARK Next Generation Internet ETF (ARKW) and ARK Innovation ETF (ARKK). This follows a pattern set in December 2021, where the company liquidated COIN shares valued at over $200 million across various ETFs, including the ARK Fintech Innovation ETF (ARKF).
These consistent sales indicate a notable departure from ARK Invest’s previous bullish stance on Coinbase. Initially an enthusiastic investor during Coinbase's IPO in April 2021, ARK Invest was among the first institutional backers of the exchange, praising its potential to democratize the crypto market. However, the stock’s volatility, fluctuating between $150 and $429, prompted ARK Invest to aggressively divest.
Notably, ARK Invest has also been shedding holdings in other crypto-related stocks, such as Robinhood and the Grayscale Bitcoin Trust (GBTC). They offloaded 23,606 shares of Robinhood valued at approximately $300,000, along with 3,360 Coinbase shares worth over $580,000. Moreover, the liquidation of 2.25 million GBTC shares, approximately $81 million, funded investments in new Bitcoin ETFs launched in October 2021.
Despite divesting from Coinbase and Robinhood, ARK Invest continues to showcase unwavering confidence in cryptocurrencies, particularly Bitcoin and Ethereum. Their strategic shift towards Bitcoin investments via new ETFs, alongside their pursuit of a Bitcoin ETF in collaboration with 21Shares, underlines their optimistic outlook for the crypto market in 2024.
It’s crucial to note that cryptocurrencies are highly volatile assets. While ARK Invest’s actions may indicate their belief in Bitcoin’s potential, individuals should conduct thorough research and exercise caution when making financial decisions in this space.
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