As the largest cryptocurrency service provider in the United States, Coinbase has faced some ups and downs in its stock price last year due to regulatory actions. However, with the overall recovery of the cryptocurrency market and the signing of a “supervision sharing agreement” with ETF applicants like BlackRock, Coinbase’s stock price has risen by over 300% in 2023.
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Coinbase’s New Year stock price falls nearly 20%
Ark Invest sells off Coinbase stocks
Is Ark Invest bearish on Coinbase’s future?
However, after entering 2024, Coinbase’s stock price did not continue its momentum. Instead, it fell by nearly 20% from its annual high of $187 at the end of 2023 due to the volatile Bitcoin prices.
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 Cathie’s ARK data, Ark Invest sold 166,183 shares of Coinbase stocks 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 clearly declined. But does this mean that Ark Invest is bearish on Coinbase’s future performance?
In fact, looking at the “stock holding ratio” of Ark Invest’s Coinbase holdings, there is no significant decline in Coinbase’s holding ratio. This may indicate that Ark Invest’s selling of Coinbase stocks is simply due to “portfolio rebalancing” in their fund’s investment composition, which is a routine operation for “actively managed” funds.
