Ark Invest Sells $3.9M in Coinbase Shares

Ark Invest, led by Cathie Wood, has sold 13,780 shares of Coinbase Global Inc. (COIN), netting approximately $3.9 million. The move came in response to Federal Reserve Chair Jerome Powell’s hawkish speech, signaling a cautious outlook on future interest rate cuts.

Powell’s remarks rattled financial markets, leading to a 10% drop in COIN’s price, which settled at $279.86. Despite the decline, Coinbase remains up an impressive 61% year-to-date.

Ark Invest Balances Portfolio Amid Gains

The sale was executed through the ARK Fintech Innovation ETF (ARKF), which still holds $110 million worth of COIN shares. Coinbase now accounts for 9.9% of ARKF’s portfolio, the maximum level allowed under Ark’s investment strategy.

Ark’s decision reflects a strategy of locking in gains to maintain portfolio balance and mitigate risk amid increasing market uncertainty. This isn’t the first time Ark has sold COIN shares during price spikes—similar moves occurred earlier this year.

Strategic Moves in Volatile Markets

Ark Invest’s proactive approach highlights its ability to adapt to changing market conditions. By trimming its Coinbase holdings after strong price gains, Ark is ensuring it balances exposure to tech and fintech stocks during an uncertain macroeconomic environment.

COIN’s performance remains subject to macro headwinds and crypto market dynamics, with intraday fluctuations emphasizing ongoing challenges. As of writing, Coinbase’s stock price has stabilized at $273.92, reflecting modest recovery after the sharp sell-off.

Ark Invest’s recent COIN sale aligns with its strategy of securing profits while navigating market volatility triggered by Fed policy signals. With Coinbase maintaining a solid upward trajectory this year, Ark remains positioned to capitalize on opportunities while mitigating exposure to risk.