The asset management firm Cathie Wood, ARK Invest, has maintained activity in a 30-day run since November 21. The firm, led by the American investor, is set to tap into the profit-taking opportunities presenting themselves as price surge.
ARK Invest market activity portrays a sustained move to offload stock whose prices continue improving.
Wood’s ARK Invest Reaps Hundred-Million in Offloading Coinbase Stock
A review of its activities shows that Wood’s firm disposed of stock from crypto exchange Coinbase, estimated at $181 million.
Further review of the disclosures for ARK Invest’s exchange-traded fund trades shows that it offloaded shares of Grayscale Bitcoin Trust worth $64 million in the past 30 days.
While ARK Invest is yet to declare profits realized from selling COIN and GBTC shares in the past month, aggregating the earnings from the sales edges closer to over $240 million, the figure arises from the calculations realized by the crypto media platform Decrypt using the closing price ARK reported to buy and sell to rebalance the holdings.
Besides establishing ARK Invest, Woods serves as the crypto-friendly firm’s chief executive and investment officer, managing an estimated $6.7 billion in assets. The firm tracks Bitcoin performance as reflected in Ark Invest’s monthly report that tracks Bitcoin prices.
Ark Invest prefers to keep the Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC) stocks within three ETFs. Past filings show that it distributes the holdings in The ARK Fintech Innovation ETF (ARKF), the ARK Next Generation Internet ETF (ARKW), and Ark Innovation ETF (ARKK).
In a recent pronouncement, Wood has praised Bitcoin, emerging as among the lead protagonists alongside MicroStrategy chairman Michael Saylor. In a recent presentation on Ark Invest’s YouTube channel, she admitted intending to illustrate Bitcoin’s best performance. In particular, she revealed that Bitcoin had realized a 161% surge in price since the onset of 2023.
Ark Invest Target Weighting Prompt Offload During Rally
The bullish run portrayed by Bitcoin qualifies the move by Ark Invest to dispose of GBTC and COIN stock, thereby realizing profits from shares acquired at a bargain. A review of the prices shows GBTC is now exchanging hands at $36.04 from a starting fee of $8.20. Coinbase shares rose from a meager $33.60 at the start of the year to $167.
Ark Invest has repeatedly prioritized sustaining balance within its balances. The firm deploys target weighting across its ETFs, requiring individual composite holdings of each stock neither to plunge below 2% nor rally above 10% of the fund’s value. The recent rally witnessed in GBTC and COIN stocks has made it inevitable for Ark Invest to offload shares of the two firms.
The move to offload the rally in Coinbase and GBTC coincides with the bullish steam realized by the world’s largest crypto by market capitalization. In the past month, Bitcoin has realized 18.3% even to test $44,000.
Coinbase and Grayscale Bitcoin Trust are riding on the Bitcoin rally as the community anticipates imminent approval of the pending applications for spot Bitcoin ETFs by the U Securities and Exchange Commission (SEC).
Ark Invest Buying Dip and Unloading Rally
Ark Invest declared that it would continue unloading the shares as the price rises, arguing that the shares held are valued more than their acquisition price. With COIN climbing 52% since November 21, ARK would have realized $134 million, thus 30% less from selling the same units that earned it $181 million.
The target weighting approach ensures that Ark Invest continually buys the dip, earning profits when offloading during the sock rally. The huge cost and selling price difference yields better returns for investors who acquired shares within ARK’s funds.
While AKR Invest is yet to attract the regulator’s attention, as does BlackRock, Wood’s firm is among the applicants waiting for the SEC’s approval in January.
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