ARK Invest is selling some of its Coinbase holdings as the crypto exchange's stock surges to a one-year high

ARK Invest is selling some of its Coinbase holdings as the crypto exchange's stock surges to a one-year high

Investment firm ARK Invest has sold some of its holdings on crypto exchange Coinbase as the stock rose to a near one-year high. On Tuesday, Cathie Wood's investment firm sold 135,152 Coinbase shares worth about $12 million from its ARK Innovation ETF. This represents 0.14% of the fund's total holdings, data compiled by Bloomberg show.

The sale came after Coinbase shares rose 9.8% on the day. The reason for this was an agreement on joint monitoring with five Bitcoin ETF applicants. This is not the first time that ARK Invest has sold Coinbase shares this year. Back in March, 160,887 shares worth $13.5 million were sold.

Despite these sales, Coinbase stock is in an uptrend. It has risen by more than 60% in the last month and by over 140% since the beginning of the year. ARK Invest has aggressively purchased Coinbase shares in several ARK funds over the past few months. In June alone, shares worth around $40 million were purchased, in April and May it was around $33 million and in March even $117 million.

According to market data, the estimated average cost of Coinbase shares in various ARK funds is $239.60 for the ARK Fintech Innovation ETF (ARKF), $254.65 for the ARK Innovation ETF (ARKK), and $242 for the ARK Next Generation Internet ETF (ARKW).

Interestingly, Coinbase shares are rising despite increasing regulatory action against the exchange in the US. The US Securities and Exchange Commission (SEC) alleged last week that Coinbase may have violated securities regulations. Coinbase argued that they were unaware of these violations, but the SEC noted that Coinbase had experienced legal counsel and had already received approval of the registration statement.

Last month, Coinbase was sued by the SEC for selling unregistered securities and other alleged wrongdoings. The commission also accuses the exchange of illegally offering financial services and failing to register as a securities exchange. Additionally, Coinbase received show cause orders from 11 US states requiring the company to justify why it should not cease operations.

Despite these regulatory challenges, the positive sentiment surrounding Coinbase continues. The crypto exchange has seen strong growth in recent months and its stocks have become a sought-after investment option. It remains to be seen how the regulatory measures will affect Coinbase and whether more investors will reduce their holdings.