Ark Invest, the investment firm known for its bullish bets on disruptive innovation, has swapped a significant portion of its Coinbase (COIN) holdings for Tesla (TSLA) shares. It has further trimmed its holdings in Coinbase on Wednesday, selling $25.3 million worth of shares. This comes amidst a recent dip in the cryptocurrency market and a bullish outlook on Tesla’s prospects.
The selloff saw Ark Invest unload 166,183 COIN shares, split between its flagship ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW). Simultaneously, these ETFs scooped up 105,201 TSLA shares, injecting fresh capital into the electric vehicle pioneer. This targeted buying spree pushed TSLA’s pre-market price up 0.85%, hinting at renewed investor confidence in the company.
Coinbase shares closed Wednesday down 2.96% at $152.24, mirroring a broader downturn in the cryptocurrency market. Bitcoin, the leading digital asset, slumped 3.5%, likely due to profit-taking after a strong December rally.
Despite the recent dip, Coinbase remains a major beneficiary of the crypto surge in 2023. Its stock price has climbed over 300% year-over-year, fueled by growing institutional adoption of digital assets and Coinbase’s position as a leading crypto exchange platform.
Recently, Cathie Wood’s Ark Invest liquidated approximately $45 million in GBTC shares and over $150 million in Coinbase shares earlier this month. The firm had sold all of its GBTC holdings shifting its investment strategy.
Wood is bullish about the future of bitcoin, stating in an interview with Peter McCormack on the “What Bitcoin Did” podcast that she does not doubt it will eventually become a global currency. She also believes that BTC is still in its infancy and could eventually be used for a wide range of everyday purchases, from buying coffee to making peer-to-peer payments.
However, Ark Invest’s continued selling adds to a growing narrative of cautious optimism surrounding the crypto market. With the US Securities and Exchange Commission (SEC) expected to rule on spot Bitcoin ETFs as early as January 10, some predict a “sell the news” event, leading to further short-term volatility.
On that note, Fidelity Investments, reportedly, has taken a significant step in the cryptocurrency space by filing a securities registration application with the SEC for its spot Bitcoin ETF. The application, which is still in its preliminary stages, has been approved for listing under the symbol FBTC by the Cboe BZX Exchange.
