Cathie Wood’s Ark Invest has trimmed its exposure to Coinbase (COIN), selling a total of $43.8 million worth of shares across three of its exchange-traded funds (ETFs).
According to the firm’s latest trading report, the sale included 124,892 Coinbase shares on Monday.
The ARK Innovation ETF (ARKK) offloaded 77,956 shares, the ARK Next Generation Internet ETF (ARKW) sold 29,802 shares, and the ARK Fintech Innovation ETF (ARKF) released 17,134 shares.
The decision appears to be part of a broader portfolio rebalancing strategy as the stock inches closer to its all-time high (ATH), indicating Ark’s cautious stance despite COIN’s recent rally.
Coinbase’s Surge Drives Strategic Rebalancing at Ark
Coinbase shares have seen a strong upward trend, likely prompting Ark Invest’s strategic trimming.
COIN has been one of the standout performers in 2024, with shares closing at $350.49 on Monday, a slight dip of 0.83%, yet still reflecting a remarkable 42.12% gain in the past month and a 41.16% rise year-to-date.
Just days earlier, on June 26, the stock hit $375.07, its highest closing price since its public debut in April 2021.
The surge is partly attributed to Circle’s entry into public markets and renewed bullish sentiment around crypto-related equities.
While the stock’s performance has been robust, Ark’s move suggests a disciplined approach to profit-taking and portfolio diversification.
Also Read: Cathie Wood’s Ark Invest Sells Over 340,000 Circle Shares Worth $52M as CRCL Stock Hits Record High
Previous Ark Activity Shows Dynamic Crypto Exposure Strategy
This recent sale marks a sharp contrast to Ark’s earlier activity in March, when the firm demonstrated a bullish stance on Coinbase.
On March 4, Ark bought 38,865 shares worth $8 million, just a week after purchasing $8.7 million in Coinbase stock, the first such acquisition since October 2023.
During the same period, Ark simultaneously offloaded $8.2 million in Spot Bitcoin ETF shares, reflecting an active strategy of shifting capital within the broader crypto sector.
The dual buying and selling behavior shows Ark’s nimble approach to crypto-related investments, constantly adapting to short-term market signals and macro trends.
Analysts Raise COIN Price Target, Supporting Long-Term Optimism
Despite Ark’s recent sell-off, market sentiment around Coinbase remains overwhelmingly positive.
Analysts at brokerage firm Bernstein recently raised their price target for COIN from $310 to an ambitious $510.
The revision was driven by improved earnings projections, expanding growth channels, and a revised valuation model that accounts for Coinbase’s increasing relevance in the evolving digital finance ecosystem.
While Ark Invest may be locking in gains in the short term, the broader investor community appears to be positioning for further upside in Coinbase’s valuation, especially as institutional interest in crypto assets continues to grow.
Also Read: Cathie Wood’s Ark Invest Acquires 84K Coinbase Shares For $13.3M Amid Market Slump