ARK sells $26M worth of COIN shares, Cathie Wood takes profit.
- admin_hrv2xlob
- March 21, 2024
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ARK Invest, the investment firm headed by Cathie Wood, has reportedly sold a significant amount of shares in Coinbase as the stock reached near its one-year high. According to a trade disclosure, ARK Invest sold 248,838 COIN shares, amounting to over $26 million based on Monday’s closing price. This comes after the firm previously sold 480,000 COIN shares worth $50.5 million on July 14, as well as an additional $12 million the previous week. Despite the sell-off, Wood expressed a positive outlook on Coinbase, particularly following a recent court ruling in favor of Ripple against the SEC.
The recent sale of Coinbase shares marks ARK Invest’s third sale in a row, following a substantial accumulation of the stock over the past year. Wood emphasized that despite the sales, the firm remains optimistic about the future prospects of Coinbase.
Last week, Ripple achieved a partial victory in court when a judge ruled that its XRP token is not considered a security when sold on the secondary market, but is classified as a security when sold to institutional investors. This ruling could have implications for Coinbase, as the SEC had claimed that 13 tokens actively traded on the platform were securities in its lawsuit against the company last month. Industry experts, including Wood and JPMorgan analysts, see the court ruling as a positive development for Coinbase.
The court ruling has had a notable impact on Coinbase’s stock price, leading to a significant increase. Currently, the shares are trading near their highest level in the past year. This surge in price can be attributed to Coinbase’s listing as a surveillance-sharing partner for various spot Bitcoin ETF applicants, including well-established firms like BlackRock and Fidelity. The association with these reputable entities has likely contributed to the positive market sentiment and the rally in Coinbase’s shares.
Cathie Wood, the founder and CEO of ARK Invest, has had a successful career in the finance industry. Born in Los Angeles in 1955, Wood graduated with a bachelor’s degree in finance and economics from the University of Southern California in 1981. She then worked in various roles at Capital Group and Jennison Associates for a total of 21 years. In 1998, she co-founded Tuelo Capital Management, a hedge fund based in New York City. Wood’s career at AllianceBernstein began in 2001, where she held the position of Chief Investment Officer of Global Theme Strategies for 12 years. After her idea for actively managing exchange-traded funds based on disruptive innovation was turned down by AllianceBernstein, she founded ARK Investment Management.
In recognition of her achievements, Wood was included in Forbes’ inaugural 50 Over 50 list in 2021, which celebrates entrepreneurs, leaders, scientists, and innovators over the age of 50. She continues to make waves in the investment world, with ARK Invest being recognized for its innovative and forward-thinking approach to investment strategies.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The author is not a financial advisor or a registered investment advisor. Always do your own research and consult with a professional before making any investment decisions.