Cathie Wood Halts Coinbase Sell-Off Amid Bitcoin ETF Buzz, Jumps Back Into This Chip Giant After 5-Year Hiatus With $8M Investment
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Cathie WoodsArk Investment Managementrefrained from selling shares of thecryptocurrency exchangeCoinbase Global, Inc.COIN on Monday, after offloading the stock in all four sessions of the previous week.
What Happened:Woods Ark Invest has been consistently selling Coinbase shares since July 2023, despite accumulating them after their direct listing in April 2021. Coinbase holds the top position in Arks flagship exchange-traded fund, theArk Innovation ETFARKK , accounting for a 10.11% weighting in the ETF.
Coinbase is also the leading holding inArk Fintech Innovation ETFARKF , representing a 13.47% weighting, and theArk Next Generation Internet ETFARKW , with a 10.35% weighting.
As of January 8, 2024, Ark held 7,567,947 Coinbase shares. At the closing price of $159.42 on Monday, Arks stake in the cryptocurrency exchange is valued at $1.21 billion.
The companys 13F report for the third quarter, filed on Oct. 18, 2023, indicated Arks Coinbase stake was 10,603,564 shares valued at $796,115,573.
Between the end of the third quarter and now, the number of shares held by Ark decreased by 3,035,617, but its value increased by over $400 million, given the rally in the shares.
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Wood, a knownBitcoinBTC/USD bull, saw the Coinbase liquidation raise questions. Some connected the move to the potential approval of a spot Bitcoin ETF by the SEC. Incidentally, Ark is among the 14 companies that have filed to sponsor a spot Bitcoin ETF, presenting the Ark 21Shares Spot Bitcoin ETF in collaboration with Swiss firm 21Shares.
Considering that Coinbase continues to be the top holding across three of its key funds, the selling seems to be related to profit-taking. Since Sept. 30, 2023, Coinbase shares have gained 112%.
Reports suggest the SEC could potentially approve a spot Bitcoin ETF as early as Wednesday.
Chip Buy:Ark also purchased 57,848 shares of chip designer Qualcomm, Inc. QCOM on Monday through ARKW andARK Autonomous Technology & Robotics ETFARKQ . The purchase is valued at $8.04 million, based on the stocks closing price of $139.03 on Monday.
The fund manager reinitiated its position in Qualcomm after liquidating its entire holdings in the chipmaker in the third quarter of 2018.
Meanwhile, Ark sold 32,971 shares ofRoku, Inc. ROKU and 139,379 shares of automation platform providerUiPath Inc. PATH .
ARKK ended Mondays session 2.82% higher at $50.28, according to Benzinga Pro data.
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