Cryptocurrency Market Update: Ark Invest Sold Large Positions in Coinbase and GBTC Last Week

During a week of significant volatility in the cryptocurrency market, Ark Invest led by Cathie Wood attracted attention as it heavily sold off its holdings in Coinbase COIN and Grayscale Bitcoin Trust GBTC.

Ark Invest Exits Coinbase

Last week, Ark Invest sold $588 million worth of Coinbase shares, including 18,962 shares of COIN sold on Friday for approximately $2.8 million, in addition to $56 million worth of shares sold earlier this week. This sell-off involved multiple Ark ETFs, indicating a significant shift in Ark Invest's investment strategy.

Volatility in Coinbase Stock Price

Coinbase's stock price has been fluctuating, closing at $147.90 last Friday. This represents a 4.5% increase over the week, a significant 50% increase in the past month, and a whopping 305% increase year-to-date. Despite these gains, the stock price is still about 60% lower than its all-time high in November 2021.

GBTC Impact

In addition to Coinbase shares, Ark Invest also sold $15 million worth of GBTC shares. This includes 12,000 shares of GBTC sold on Friday for $409,000, and shares worth $14.5 million sold earlier this week. GBTC shares saw nearly a 2% increase last week, but have still dropped by about 40% since February 2021.

Market Trends and Bitcoin Decline

Interestingly, the sale of GBTC coincides with a significant decrease in the discount to the net asset value (NAV) of GBTC shares, dropping from 44% in June to just 7.4% in mid-December, the lowest level in over two years. Meanwhile, Bitcoin itself fell by 5% last week, breaking eight consecutive weeks of stable growth.

Ark Invest's decision to sell Coinbase and GBTC shares at this juncture reflects a strategic rebalancing in response to changing dynamics in the cryptocurrency market. These actions highlight the volatility in the crypto market, where significant gains can quickly be offset by sharp declines.