Under the guidance of CEO Cathie Wood, Ark Invest recently sold off approximately 106,000 shares of Coinbase, amounting to over $27 million. This move represents the latest instance of the investment firm divesting from COIN.
The ongoing significant sell-off of Coinbase by Ark Invest persists.
The shares that have been sold off allegedly originated from the ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW).
Cathie Wood and Ark Invest's trade activity from today 3/12 pic.twitter.com/Qo3koarip6
— Ark Invest Daily (@ArkkDaily) March 13, 2024
Just a day following their nearly $69 million sell-off of Coinbase, the investment firm’s latest action underscores its status as the second-largest holder of the cryptocurrency exchange platform’s stock.
Amidst the latest rally, Bitcoin achieves an all-time high.
Ark Invest’s decision to offload COIN shares coincides with a remarkable surge in Bitcoin’s value, with the cryptocurrency surpassing $73,000 and achieving an all-time high. This surge comes in the wake of Bitcoin’s previous rally in January 2024, spurred by the approval of nearly a dozen spot Bitcoin ETF applicants by the United States Securities and Exchange Commission (SEC).
Cathie Wood, CEO of Ark Invest, has been vocal about her bullish outlook on Bitcoin. She previously shared her prediction with CNBC, suggesting that Bitcoin could potentially reach over $1.5 million by 2030. Wood emphasized the significance of the SEC’s approval, stating that it accelerated the timeline for Bitcoin’s growth trajectory.
The approval by the federal agency is viewed by many crypto enthusiasts as a signal of mainstream adoption of Bitcoin throughout the country. Additionally, traditional banks are exploring their own opportunities within the cryptocurrency space, further bolstering confidence in Bitcoin’s long-term prospects.
Wood reiterated Ark Invest’s optimistic outlook, highlighting the anticipated increase in institutional involvement and emphasizing the belief that the incremental price assumed for institutions has more than doubled. This sentiment reflects a growing confidence in Bitcoin’s role as a viable investment asset and a hedge against inflation.
Will Traditional Banks Increase Their Involvement in Crypto Following SEC’s Spot Bitcoin Approval?
On Monday, FDIC Vice Chairman Travis Hill raised concerns about the SEC’s SAB 121 accounting bulletin, criticizing its implications for banks in the digital asset space. The bulletin mandates that banks list custodied digital assets on their balance sheets, a departure from the conventional practice of holding such assets off-balance sheet.
Hill highlighted the discrepancy in treatment, noting that while other assets held in custody are typically treated as the property of the customer, custodied digital assets are required to be listed on the balance sheet, thus subjecting banks to additional regulatory requirements.
He emphasized the challenges posed by this requirement, stating that the on-balance sheet recognition triggers various regulatory obligations, including capital, liquidity, and other prudential requirements. These regulatory burdens, according to Hill, make it significantly difficult for banks to engage in custodial activities involving digital assets at scale.
The House Financial Services Committee has passed a bill aimed at overturning SAB 121, signaling a potential shift in regulatory approach. However, the bill is currently pending a vote on the House floor, leaving the future regulatory landscape for banks in the digital asset ecosystem uncertain.
