Coinbase’s stock has been in high demand for the past couple of days.
Reports state that Coinbase’s stock on NASDAQ hit its highest price since the Terra crash in 2022. Let’s discover what is happening.
ARK Invest is Selling its COIN Shares
Cathie Wood’s ARK Invest is cashing in on its COIN shares and sold about $5.26 million of shares on Monday. At the time of the sale, Coibase shares had reached $119.7 per share.
🚨 ARK Invest Sells $5.2 Million in Coinbase Shares
ARK Invest is taking advantage of $COIN stock surge, selling 43,956 shares for $5.3 million.
The sale comes as #Coinbase's stock price reaches its highest level in 18 months.
— Satoshi Talks (@Satoshi_Talks) November 28, 2023
TradingView data shows that Coinbase’s stock has increased by 168% in the last year and by more than 220% since January 2023. However, the stock is 70% off its all-time high of $319, which was established in September 2021.
ARK is one of the companies that applied for a spot in Bitcoin ETF with the SEC. Interestingly, ARK has been selling Coinbase stocks on a regular basis throughout this year. It sold about 63,675 Coinbase shares worth $5.1 million in October. ARK also sold Coinbase’s shares in July, when COIN’s shares traded around $90. Records show that the company sold about $103 million worth of Coinbase shares in July.
Coinbase’s shares aren’t the only stock ARK is moving off. The investment company has also been aggressively selling down shares of Grayscale Bitcoin Trust (GBTC). The company sold about 700,000 GBTC shares in a single month. Reports state that it dumped around 94,624 GBTC shares on Nov. 24 for about $3 million.
Cathie Wood's Ark Investment Management LLC reduced its stake in Coinbase Global Inc. for the first time in nearly a year, with the Ark Innovation ETF selling 135,152 Coinbase shares on July 11. Ark is the fourth largest holder of Coinbase. Coinbase is up more than 150% for the…
— Wu Blockchain (@WuBlockchain) July 12, 2023
Several crypto users have wondered about the implications of these sales. Eric Balchunas, an ETF analyst for Bloomberg, claims that ARK’s sales of GTBC do not imply that the company is not optimistic about Bitcoin or that it is clearing space for its next spot Bitcoin ETF, the ARK Invest and 21Shares. Balchunas believes that ARK was probably selling winners and vice versa to preserve desired weightings.
Why are Coinbase’s Shares Up?
Coinbase is America’s biggest cryptocurrency exchange. And has been a publicly traded firm on NASDAQ since 2021. However, there are several factors triggering the growth of its stock. The most probable would be that several top Wall Street firms have named Coinbase as their custodian or surveillance-sharing partner for their spot bitcoin ETF applications.
💥 Coinbase shares = max since May 2022
It's clear why Coinbase shares are rising.
1) launch L2 Base
2) launch of an international exchange
3) storage of BTC for ETF funds in the future
4) removal of Binance from the market
— crypto insider Calls (@cryptoinsiderzs) November 28, 2023
Fidelity and BlackRock named the crypto exchange in their applications. Another possible factor could be the situation with Binance, Coinbase’s biggest rival. The exchange is being forced out of the US market following a settlement with the DOJ. This could possibly mean giving Coinbase some of Binance’s market share.