Ark Invest, the renowned investment management firm led by Cathie Wood, has once again reduced its holdings in Coinbase, selling $1.4 million worth of the cryptocurrency exchange’s shares on Monday. This move comes on the heels of last week’s significant divestment of $15 million in Coinbase stock when the price was at its highest level since April 2022.
Further reductions in Coinbase holdings
Ark Invest sold a total of 10,218 Coinbase shares in its latest transaction, with 2,970 shares, valued at approximately $419,000, being offloaded from its Fintech Innovation ETF, and 7,248 shares, valued at $1 million, coming from its Next Generation Internet ETF. This follows the substantial sell-off last Thursday, when Ark disposed of 37,377 Coinbase shares worth $4.7 million. Earlier in the same week, Ark had also sold $5.3 million and $4.9 million worth of COIN stock on Monday and Wednesday, respectively.
Coinbase’s stock price, trading at $138.05 in pre-market trading, has been on a remarkable upward trajectory, surging around 70% over the past month and posting a staggering 286% year-to-date gain. Despite these impressive gains, the stock still lingers more than 60% below its all-time high of $342.98, which was achieved during the peak of the crypto bull market in November 2021.
In contrast to its Coinbase divestments, Ark Invest has been actively acquiring shares in other fintech companies. The company purchased an additional 14,702 shares of Coinbase competitor Robinhood, valued at $140,000. This acquisition follows Ark’s $3 million investment in Robinhood shares just last week. These strategic investments coincide with Robinhood’s expansion efforts, including the introduction of commission-free stock trading in the UK and plans to expand its crypto trading services to the European Union in the near future.
Market Overview
Ark Invest’s recent portfolio adjustments come as the cryptocurrency market experiences notable developments. Bitcoin, the leading cryptocurrency by market capitalization, briefly surged above the $42,000 mark, reaching levels not seen since the Terra ecosystem crash in May 2022. Bitcoin’s price surged by over 6% before experiencing a correction, ultimately settling at $41,691, representing a remarkable year-to-date increase of over 150%.
While Bitcoin dominated the headlines, the performance of other major cryptocurrencies was relatively subdued. Ether, the second-largest cryptocurrency by market cap, experienced a 4% gain, reaching a price of over $2,250. Binance Coin (BNB) recorded a 2% increase, while Solana’s price remained relatively flat.
Despite the varied performance of individual cryptocurrencies, the total cryptocurrency market capitalization exceeded $1.6 trillion for the first time since April 2022, signifying a resurgence in investor interest and market confidence.
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