The recent data from Cathiesark reveals that Ark Invest Management sold 135,152 Coinbase shares for $12 million on July 11. This transaction took place at a time when Coinbase stock was experiencing a rally, reaching a one-year high of $90. This surge continued the positive performance trend that Coinbase had been displaying recently. Notably, over the last 30 days, Coinbase stock has outperformed Bitcoin’s price by increasing over 60%, while BTC only gained less than 20% during the same period.
Coinbase’s appeal as a partner for traditional financial institutions becomes evident with various entities applying for a Bitcoin exchange-traded fund (ETF). The majority of these applicants have chosen Coinbase due to its reputation and agreed upon a surveillance-sharing agreement. The U.S. Securities and Exchange Commission (SEC), however, returned the applications filed in June, citing a lack of clarity and comprehensiveness. In response, most applicants are opting to refile and name Coinbase as their partner, highlighting the exchange’s influence and credibility in the market.
Despite the regulatory uncertainty surrounding Coinbase, Cathie Wood, the founder of Ark Invest, has consistently displayed a bullish stance on Coinbase stocks. She believes that the SEC’s actions against Binance could indirectly benefit Coinbase. Unlike Binance, Coinbase has not been accused of any criminal activity, strengthening its legitimacy as a U.S. financial institution. To demonstrate her conviction, Wood’s investment fund acquired over 400,000 Coinbase shares amidst the regulatory scrutiny.
Ark Invest’s Position as a Significant Shareholder
Ark Invest’s sale of 135,152 Coinbase shares should not overshadow its substantial stake in the exchange. According to Cathiesark data, Ark Invest is one of the largest shareholders of Coinbase, holding over 11 million COIN stocks across all its funds. This indicates a long-term belief in the potential of Coinbase’s growth and its continued success in the evolving cryptocurrency landscape.
By divesting a portion of their Coinbase shares, Ark Invest may be repositioning its portfolio or capitalizing on the recent price surge. Regardless of this share sale, both Ark Invest and Cathie Wood have maintained a positive outlook on Coinbase’s future prospects, considering it a valuable asset within their investment strategy.
Although Ark Invest’s sale of Coinbase shares accumulated $12 million, it is important to recognize that this should not diminish Coinbase’s overall position in the market. With its positive performance, valued partnerships, and highlighting of U.S. financial legitimacy, Coinbase continues to be an influential and trusted player in the cryptocurrency industry. The actions of major institutional investors, such as Ark Invest, provide further validation of Coinbase’s potential.
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