Cathie Wood’s ARK dumps $17M in Coinbase stock as shares fall 37% YTD

Cathie Wood’s ARK Invest continued its strategic trimming of high-conviction positions this week, offloading approximately $17 million worth of Coinbase Global (COIN) stock. The sale, executed primarily through the flagship ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW), comes as the cryptocurrency exchange’s shares have struggled significantly in 2024, plummeting 37% year-to-date (YTD).

The move marks a notable shift in strategy for ARK, which historically uses major dips to aggressively accumulate shares in its core holdings. While COIN remains a top-ten position across several ARK funds, the recent disposal suggests a degree of risk management amid persistent regulatory uncertainty surrounding the crypto market and slowing trading volumes observed in the second quarter.

Coinbase, which benefits from volatility, has faced headwinds following the rapid rise and subsequent cooling off of Bitcoin and Ethereum prices earlier in the year. Furthermore, the regulatory actions taken by the SEC against other crypto entities have cast a shadow over institutional interest. Analysts suggest that ARK’s sale may be driven by mandatory portfolio weighting restrictions or a belief that the short-term market turbulence for COIN is not yet fully priced in, despite the steep decline.

Source: Cathie Wood’s ARK dumps $17M in Coinbase stock as shares fall 37% YTD