ARK Invest, the asset management company and issuer of a Bitcoin exchange-traded fund (ETF) led by Bitcoin proponent Cathie Wood, has offloaded a substantial portion of its holdings in Coinbase, Robinhood, and Nvidia stocks.
Based on the disclosures from Ark Invest Daily on February 26th, the ARK Innovation ETF (ARKK) divested 35,509 shares of Coinbase (COIN) valued at $6.89 million, calculated at the closing price of $193.94.
Cathie Wood and Ark Invest's trade activity from today 2/26 pic.twitter.com/77xuaNw2my
— Ark Invest Daily (@ArkkDaily) February 27, 2024
On the contrary, Coinbase experienced a surge from its opening price of $168.66 for the day, briefly reaching the $193 threshold and ultimately registering a one-day gain of 16.85%.
The sale of Coinbase shares marked a continuation of previous divestments totaling $34.3 million from ARKK, ARKF, and ARKW earlier in February.
In the past month, Coinbase has seen a notable 46% surge, rising from $132.82 to its present level.
Further Trading Activities: ARK ETFs’ Actions
Additionally, the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) collectively offloaded 444,853 shares of Robinhood (HOOD), amounting to $6.94 million based on the closing price of $15.59.
Noteworthy trading activities also encompassed the sale of 2,724 Nvidia (NVDA) shares valued at $2.15 million by the ARK Genomic Revolution ETF (ARKG).
ARK Invest’s Insights on Bitcoin’s Potential Price Trajectory
Ark Invest’s “Big Ideas” recently unveiled an analysis detailing a potential pathway for Bitcoin’s price to surge to $2.3 million.
According to Brett Winton, Ark’s Director of Research, historical data suggests that allocating between 0.5% to 4.8% of an investor’s portfolio to Bitcoin could have generated optimal returns over a five-year span.
The report further pointed out that a mere 1% global investment from the $250 trillion in investable assets into Bitcoin could propel its price to $120,000. A more substantial allocation of 19.4% might elevate the price to an astonishing $2.3 million.
Ark also reflected on Bitcoin’s remarkable price rebound in 2023, which witnessed a staggering 155% increase. This resurgence was attributed to several key events, including record-breaking transaction volumes, Ripple’s legal victory against the SEC, and PayPal’s introduction of a USD stablecoin.
The firm underscored Bitcoin’s resilience, particularly highlighting its surge following the collapse of regional banks like Silicon Valley Bank, underscoring its pivotal role in mitigating counterparty risk.
