Cathie Wood’s investment company, ARK Invest, has sold $12 million worth of Coinbase shares from the ARK Innovation ETF, one of the most important exchange-traded funds (ETFs).
This is the second time in 2023 that ARK has sold part of its Coinbase shares. In March, the investment company sold about $13.5 million worth of its Coinbase stocks.
Interestingly, the company has also been actively acquiring shares of Coinbase in recent months. In June 2023, ARK spent approximately $40 million on Coinbase shares. The investment company added shares valued at about $33 million in April and May and $117 million in March to its portfolio funds.
Other major Coinbase shareholders, including key people at the crypto company, have also been selling their Coinbase shares. On July 6, CEO Brian Armstrong and a number of other senior Coinbase executives sold a total of 88,058 shares for an estimated $6.9 million. Jennifer Jones, the chief accounting officer at Coinbase, sold 74,375 shares earlier on June 29 for a profit of $5.2 million.
These sales have been linked to the increasing prices of Coinbase stocks. The price of Coinbase stock has increased by more than 60% over the past month and more than 140% over the entire year. According to data from TradingView, the price momentarily reached $90 on July 11 after rising from about $82 to as high as $90.9. The stock ended Tuesday’s trading session at $89 following Wood’s transaction.
This is despite the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase for alleged securities violations. The rise in the stock price could be mostly related to a desire to avoid missing out on the BlackRock spot Bitcoin ETF registration, which included Coinbase as a “surveillance-sharing” partner.
Wood has been a vocal supporter of Coinbase; She told Bloomberg that she believes the company will eventually benefit from the more serious accusations brought against Binance. She argued that Coinbase would benefit in the long run because the competition would become less fierce as Binance comes under increased regulatory attention for more criminal acts.
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