ARK Invest, a firm seeking to launch a spot Bitcoin exchange-traded fund (ETF) in 2024, has made substantial profits from its significant holdings in Coinbase stock. On December 5, ARK sold off a considerable number of Coinbase shares, amounting to 237,572 shares across three of its funds. The transaction yielded at least $33 million, capitalizing on a day when Coinbase shares closed at $140 per share.
Among these sales, the ARK Innovation ETF (ARKK) sold 201,711 Coinbase shares, while the ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) sold 28,535 and 7,326 shares, respectively.
Coinbase shares have been on a bullish trajectory, surging by 280% year-to-date (YTD), in tandem with the buoyant cryptocurrency market. Notably, the price of Coinbase shares reached a yearly high, surpassing $147.4 on December 5, marking the stock's highest level since April 2022. Over the last month, the shares have surged by nearly 70%.
Additionally, ARK sold 168,127 shares of Grayscale’s Bitcoin Trust (GBTC), raking in $5.9 million at a closing price of $35. The company began offloading GBTC shares in October 2023 when Bitcoin’s price approached $34,000.
Despite the significant sell-off of Coinbase stock, ARK still maintains a substantial position in the exchange. As of December 5, Coinbase remains the largest asset in the ARKF ETF portfolio, comprising over 13% of its net assets, equivalent to nearly $135 million. Moreover, it accounts for 11.72% and 11.64% of the ARKW and ARKK ETFs, respectively, positioning it as the largest asset in both funds.
While reducing exposure to Coinbase, ARK has been actively acquiring shares in other cryptocurrency-related stocks, including Robinhood. The firm continued buying SoFi Technologies shares even after announcing the discontinuation of its cryptocurrency trading service.
