ARK Invest, an investment company by Cathie Wood, a seasoned investor, is selling a small piece of its huge stakes in Coinbase to earn profit. The crypto exchange saw a price increase of 9.8% after Ripple won case against SEC.
As its stock soar to a one-year high, ARK Innovation ETF, under the management company, sold off some of its Coinbase holdings. According to Bloomberg, this holdings amounts 0.14% of its total holdings.
Tuesday saw the sale of 135,152 Coinbase shares from one of Cathie Wood’s top exchange-traded funds, the ARK Innovation ETF, for over $12 million.
Cathie is well-known in the investment community for her aptitude at spotting and profiting from new trends and disruptive technology. Cathie strives to achieve the best performance of ARK Invest’s funds by closely watching market changes and modifying her investment positions accordingly.
It’s important to note that ARK Invest’s selling action does not necessarily indicate a lack of faith in Coinbase’s future prospects. However, the particular reasons for the sale are yet unknown. It might be an example of Wood’s careful approach to risk management. As the quick rise in Coinbase’s stock price may have resulted in an overweight position in ARK’s portfolio.
Furthermore, by selling a piece of the investment, ARK Invest can rebalance its portfolio and possibly shift money to other attractive investments that fit its thematic approach.
Furthermore, this is not the first time Cathie’s choice to accept profits has been made public. The growth investor stopped purchasing Coinbase stock (COIN) in March by selling 160,887 shares of the cryptocurrency exchange, which at the time it was published was worth about $13.5 million.