“Coinbase’s Stock Plummets Nearly 20% in the New Year, Ark Investment Sells Over £200 Million in Recent Weeks”

"Coinbase's Stock Plummets Nearly 20% in the New Year, Ark Investment Sells Over £200 Million in Recent Weeks"

"Coinbase's Stock Plummets Nearly 20% in the New Year, Ark Investment Sells Over £200 Million in Recent Weeks"

As the largest cryptocurrency service provider in the United States, Coinbase’s stock price has faced some fluctuations last year due to regulatory pressure. However, with the recovery of the overall cryptocurrency market and the signing of a “Supervisory Sharing Agreement” with ETF applicants such as BlackRock, Coinbase’s stock price has risen by over 300% in 2023.

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Coinbase’s stock price fell nearly 20% at the beginning of the year
Ark Invest sells off Coinbase stocks
Is Ark Invest bearish on the future?

However, after entering 2024, Coinbase’s stock price did not continue its momentum but instead experienced a nearly 20% drop from its annual high of $187 at the end of 2023, mainly due to the drastic fluctuations in the price of Bitcoin.

It is worth mentioning that Ark Invest, one of the institutions applying for a Bitcoin spot ETF, has been selling off Coinbase stocks in recent weeks. According to data from Cathie’s ARK, Ark Invest sold 166,183 shares of Coinbase stock worth $25.3 million yesterday.

In the past few weeks, Ark Invest has sold a total of $200 million worth of Coinbase stocks. As shown in the chart below, Ark Invest’s Coinbase stock holdings have shown a significant downward trend. However, does this mean that Ark Invest is bearish on Coinbase’s future performance?

In fact, looking at the “stock holdings ratio” of Ark Invest’s Coinbase holdings, there is no significant decline. This may indicate that Ark Invest’s selling of Coinbase stocks may be due to the “rebalancing” of their investment portfolio weights, which is a routine operation for “active” funds.