In a surprising move, Cathie Wood’s flagship fund ARKK has made its first sale of Coinbase Global stock in nearly a year. As Coinbase, the under-fire cryptocurrency exchange, experienced a meteoric rise, Wood’s fund decided to sell approximately $12 million worth of Coinbase shares on Tuesday. This came amidst a day of remarkable growth for Coinbase, with its stock surging nearly 10%. Currently, Coinbase holds the number-two position in the fund’s portfolio, accounting for just over 8% of its overall weighting. The only company ahead of Coinbase is Tesla, with a marginal lead.
The surge in Coinbase shares can be attributed to two factors: the impressive rally of bitcoin and the company’s potential involvement with several spot bitcoin exchange traded funds that are seeking approval from the Securities and Exchange Commission (SEC). This year alone, Coinbase shares have seen an astonishing 152% surge, riding the coattails of bitcoin’s popularity and market gains.
However, it is important to note that Coinbase is currently facing a lawsuit filed by the SEC. The allegations state that the company has been offering unregistered securities to its investors. This legal battle adds a layer of complexity to the future prospects of Coinbase.
In a parallel move, Coinbase executives, including CEO Brian Armstrong, have also sold approximately $7 million worth of their own company’s stock this month. This further adds to the evolving narrative surrounding Coinbase and may indicate additional insider concerns or strategies at play.
