ARK Invest, led by Cathie Wood, has sold $5.3 million worth of Coinbase (COIN) shares after COIN’s price surged following US litigation against Binance. On Monday, ARK Invest sold 43,956 shares from its ARK Fintech Innovation exchange-traded fund (ETF), a move that does not appear to be the result of a change in Wood’s bullish Bitcoin (BTC) outlook.
Cathie Wood sold Coinbase shares for the third time this year, offloading $5.3 million worth to scoop up $1.2 million in Robinhood shares instead. This is the third time one of her funds has done so this year, after selling $103 million worth in July and 65,376 shares in October.
Wood May See Profit Potential in Robinhood
According to Bloomberg ETF expert Eric Balchunas, the sales do not mean Wood has lost faith in Bitcoin. Rather, ARK likely sold shares to adjust the weighting of Coinbase stocks in some of its ETFs. Its earlier sales of Grayscale Bitcoin Trust (GBTC) were also on the back of an increase of 76% in the share price, suggesting Wood was offloading winners to maintain the weighting of GBTC in her ETF baskets.
“With ARK you gotta look at weightings history before you begin your interpretation… ARK *has* to sell many shares to keep a 9%-ish weighting,” Balchunas wrote.
Buying Robinhood shares means that Wood sees potential in the stock and crypto brokerage despite a decline in crypto revenues. Robinhood reported a 26% drop in crypto trading revenues amid its delisting of Cardano, Polygon, and Solana this year. During its earnings report, CEO Vlad Tenev said the company is planning to roll out its app in Europe, which
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Author: David Thomas
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