Cathie Wood of Ark Invest sold some shares of the Grayscale Bitcoin Trust (GBTC) last week and has now moved on to liquidating Coinbase stocks after the latest rally of the stock.
The investor and founder of the well-known investment company had purchased these crypto assets when prices were significantly lower, and now she is bringing home the profits.
The decision to sell GBTC shares is motivated by the fact that the likely conversion of the Grayscale fund into a spot ETF has led to the discount on NAV reaching its annual lows, making it convenient to abandon the position.
Regarding Coinbase’s action, the executive of Ark Invest preferred to take advantage of the +245% rally that occurred this year on COIN, to switch to other stocks like Robinhood’s action (HOOD).
Let’s see all the details below.
Ark Invest by Cathie Wood sells Coinbase shares for $5 million
The multimillionaire investor Cathie Wood, founder and CEO of Ark Invest, sold yesterday 37,377 Coinbase shares worth about $4.7 million, according to the latest closing price.
The move follows other sales operations of the same security, which took place on Monday, November 27th and Wednesday, November 29th, for a total value of approximately 15 million dollars.
COIN prices have reached their highest level in the last 19 months and visionary Cathie Wood has decided to take profit and move her capital to other more exciting horizons.
The stocks listed on the Nasdaq cryptocurrency exchange reached their highest level since April 2022 at the beginning of the week, reaching $119.77 on Monday.
The liquidations in question, which occurred in its ETF Next Generation Internet with the ticker ARKW, came after ARK itself had also sold holdings in the Grayscale trust last week.
In particular, GBTC, which has also been experiencing strong growth since the beginning of the year, has started to discount the chances of SEC approval for a regulated investment fund, reducing the discount on NAV (net asset value) to the lowest levels in recent months.
Selling GBTC meant taking advantage of a situation that rarely occurs in the market and that has generated a lot of liquidity in the coffers of the company based in St. Petersburg, Florida.
Ark has not completely exited the cryptocurrency market, and the recent sell operations on Coinbase stock are only meant to invest in a security that potentially offers more lucrative opportunities.
For this reason, the proceeds from COIN and GBTC have been poured into the action of Robinhood (HOOD), which has only grown by 8% since the beginning of the year.
The investment manager Ark has purchased 221,759 HOOD shares for a total of $1.97 million, which have been added to the existing 143,063 shares held in the portfolio on November 27th.
This title is still down 80% from the highs of August 2021, but given the company’s core business, it could provide good speculative satisfaction according to Wood’s visions.
Robinhood is also expanding its crypto trading services within the European Union, with a landing expected in the coming weeks.
The expansion of European markets could increase corporate profits, leading to a rise in the price of the stock resource.
The crazy performances of COIN in 2023: what can we expect in the next year?
The choice to sell when a stock is near its local highs, and to buy when it is near its local lows, is a typical strategy of investment firms like Ark Invest, which in the case of Coinbase made no exceptions.
The investment fund had purchased stocks of various COIN securities several months ago and waited for the asset to reach the overbought zone in the weekly RSI before selling its holdings for US dollars.
The latest performance of cryptocurrency exchange Coinbase’s stock has been nothing short of astonishing, reaching the highest price in the last 19 months, with an increase of almost 250% on an annual basis.
At the time of writing, COIN records a value of 124.72 dollars but it is already quoted at 128.85 dollars in the Nasdaq premarket, with the opening of American trading expected at 15:30 Italian time.
Most likely, American traders will continue to buy the stock until it reaches above $130, following a very clear bullish trend.
The last 5 weeks have seen all green candles on the asset’s chart, which, if it doesn’t encounter any unexpected obstacles, could already start attacking the next resistance at $160 from Monday onwards.
The road to return to the highs is still very long and rugged: its recovery will not be easy but many expect that 2024 will be the right year.
An increasingly certain approval of the SEC for a spot Bitcoin ETF will benefit Coinbase on two different fronts.
On one hand, the consecration of BTC as a regulated asset could easily lead to an increase in its price, with obviously positive effects on the exchange platform.
On the other hand, we remind you that all funds that have applied to offer their clients a spot investment tool in bitcoin, including ARK, will rely on Coinbase as custodian for these operations.
It is inevitable, therefore, that the most anticipated event of the year for the entire cryptographic community can have a positive effect on Coinbase and probably also on its shares.
Cathie Wood of ARK prefers to focus on other horses, fresher and less tiring for triple-digit rallies, while many analysts believe in a bright future for cryptocurrency trading.
To future generations, the difficult judgment.
