ARK Invest Sells Bitcoin ETF Holdings Amid Surge, Citing Market Momentum
ARK Investment Management sold $8.7 million worth of its ARK 21Shares Bitcoin ETF (ARKB) and $13.3 million in Coinbase Global Inc. (COIN) shares on Tuesday, actions taken after both assets hit record highs, the firm confirmed.
Selling After Peak Performance
The sales were prompted by a market rally culminating in an all-time high above $123,000 for Bitcoin, briefly, and a record high close of $398.50 for Coinbase shares, which pushed its market capitalization above $100 billion.
Potential Motivations
An analyst noted potential reasons for the sale following the significant gains. “They may have been looking to capitalize on recent market momentum while reducing exposure ahead of the upcoming CPI data release,” said Nansen Analyst Nicolai Sondergaard.
“Alternatively, it could reflect a strategic tilt towards higher-risk, higher-reward assets, or possibly selling assets that have significantly outperformed their intrinsic value,” Sondergaard added.
Market Context
Bitcoin surpassed $123,000 on Monday before pulling back slightly, trading around $119,200 at press time and showing a 2.4% increase over the last 24 hours. Similarly, Coinbase shares reached a new peak shortly after the ARK sale, crossing $400 briefly.
Regulatory Factors & Context
Separately, ARK sold $95 million worth of Coinbase shares this month as part of a rebalancing strategy. This coincided with regulatory developments, including the U.S. Supreme Court declining to review the case challenging IRS access to Coinbase user data (Harper v. Faulkender).
The ARK Bitcoin ETF sale is particularly noteworthy for the firm, known as a significant early institutional adopter of cryptocurrency. ARKB remains a substantial holding within ARK’s Next Generation Internet fund (ARKW), representing a 7.2% stake valued at about $157.2 million.
Broader Crypto ETF Trend
Ark’s sale contrasts with the broader trend in the Bitcoin ETF market, which saw net inflows of $403.1 million on Tuesday overall. ARK’s ARKB fund was among the handful of Bitcoin-based ETFs, though it posted net outflows of $6.2 million that day. Meanwhile, BlackRock’s IBIT, another leading Bitcoin fund, saw inflows of $416.3 million.
Coinbase Momentum Continues
Coinbase share price has surged more than 48% over the past month, driven primarily by the ongoing crypto bull market increasing trading volumes on its platform.
