During 2024, ARK Invest by Cathie Wood sold Coinbase shares several times.
Now, however, it seems to have changed its mind.
Cathie Wood: the sales of Coinbase shares by Ark Invest
In 2023, at its peak, ARK Invest’s ETFs had come to hold more than 11.3 million Coinbase shares.
By the end of the year, they had already fallen to 9.7 million, but starting from December, the sales had intensified.
Already in February 2024, they had dropped to 7.2 million, and by May, the number of Coinbase shares collectively owned by all ARK Invest ETFs was only three and a half million.
In August, they had dropped to 2.5 million, and by September, they had become less than 4,000.
Note that since Cathie Wood’s ARK Invest ETFs started selling Coinbase shares, their price has risen from $105 to the current $167, and the bulk of these sales were made above $130.
The purchases, over the past years, had been made at lower prices, so it was a matter of profit-taking for the bull degli ETF.
The performance of Coinbase stocks on the stock market
The Coinbase stock was listed on the stock exchange in April 2021, and that placement marked the end of the first part of the latest major bull run, with the price of BTC having risen from about $11,000 to $64,000 in six months.
The placement price was absolutely exaggerated (380$), and in fact, just a month later, it had plummeted to 200$.
Things, however, went even worse with the bear-market of 2022, when the price ended up dropping to just over $30, which means a loss of more than 90% from the initial price.
Furthermore, until October of the following year, the price did not return stably above $100.
It is possible to imagine that the bulk of the purchases of Coinbase shares by ARK Invest ETFs occurred when the price was below $100, or in any case below $150.
With the bull run at the end of 2023, however, the price of Coinbase shares has also risen a bit.
The maximum peak of 2024 was reached in March above 280$, although it later fell below 170$.
The largest liquidation of Coinbase shares by ARK Invest occurred this year after the price rose above $170.
Coinbase Stocks: the new purchases by ARK Invest of Cathie Wood
The ETF by Cathie Wood in which Coinbase shares currently have a greater weight is ARKF (ARK FinTech Innovation).
This fund at the beginning of August had come to hold less than 2,000 Coinbase shares, but then it went back to buying.
In particular, yesterday he purchased almost 13,000 Coinbase shares, with an investment of nearly 2.2 million dollars.
In the current state, ARKF holds Coinbase shares with a total value exceeding 64 million dollars.
The stock COIN has returned to being the second largest by AUM within the ARKF ETF, behind only SHOP of Shopify.
Other ARK ETFs also currently hold Coinbase shares, such as ARKW (ARK Next Generation Internet ETF) and ARKK (ARK Innovation ETF).
ARKW holds Coinbase shares for a total of 69 million dollars, even though the weight of the COIN stock in this ETF is only sixth. It should be noted, however, that the second is ARK Bitcoin ETF, with more than 137 million dollars.
ARKK, on the other hand, holds Coinbase shares for as much as 367 million dollars, also because it has an AUM exceeding 5.6 billion dollars. Within the fund, COIN is surpassed only by Tesla (825 million) and ROKU (634 million).
The reasons for the change of course
It was therefore in every respect a trend reversal.
Between 2022 and 2023, Cathie Wood had many Coinbase shares purchased by her ARK Invest ETFs, only to have them sold mainly during 2024.
This operation closed overall in profit, since the purchases were made at a price lower than $150, and a good part of the sales were carried out at a price higher than $170.
Having taken home the profit, Cathie Wood has returned to showing interest in the COIN stock, this time purchasing it at a price between $150 and $190.
Although the reasons behind this change of course are not precisely known, it is hypothesized that Wood foresees the possibility of a new bull run crypto starting.
In the event that this happens, the price of Coinbase shares could also return to the levels of 2021. Even if it is not certain that it will return to $380, or to the highs above $420, it cannot be ruled out that it could at least return above $200.
Of course, there is no reason to consider a new bullrun certain, but in the past, after the presidential elections in the USA, there has always been a bullrun crypto, since Bitcoin has existed.
It could therefore be a new medium/long-term speculative strategy, perhaps with the goal of selling in 2025 or 2026.