- Cathie Wood’s Investment firm sold its $12 million worth of Coinbase shares on Tuesday.
- Ark invested in Coinbase 11 months ago and expanded its stake during the crypto market turbulence.
- Coinbase stock surged by 16% after reaching a settlement with Cboe’s BZX Exchange for ETF applications.
Cathie Wood’s Ark Investment Management LLC sold $12 million worth of shares in Coinbase Global Inc on Tuesday, amid a rally in the exchange’s stock price. As reported by Bloomberg, Ark Innovation ETF sold off 135,152 shares, giving up its position as Coinbase’s fourth-largest shareholder.
Ark’s investment journey in Coinbase started 11 months ago. Ark continued investing till June, persistently expanding its stake through a period of crypto market turbulence caused by increased US regulatory scrutiny, the downfall of Sam Bankman-Fried’s business empire, and a series of bankruptcies.
On Tuesday, Coinbase stock experienced a significant surge, rising by as much as 16%, reaching a peak of $92.15. This jump in value came after the crypto exchange reached a settlement with Cboe’s BZX Exchange to uphold a surveillance-sharing agreement for five of its spot bitcoin exchange-traded fund (ETF) applications.
Amendments to the original filings, which were submitted to the Securities and Exchange Commission (SEC) on Tuesday, confirmed the agreement that was finalized on June 21 for each of these applications.
Furthermore, data from TradingView revealed that over the past month, Coinbase stock has surged by over 60%. Meanwhile, the year-to-date growth stands at an impressive figure of over 140%.
According to Bloomberg, although Wood remains a prominent holder of Coinbase stocks, Ark’s sale of its stake can motivate other investors to take similar actions to gain some profit during the rally.
In 2023, Wood’s Ark Innovation ETF grew by 51%, alongside a surge of 38% and 16% for the Nasdaq 100 Index and S&P 500, respectively.
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