COIN rose to a 20-month high, and GBTC has added 327% since the beginning of the year

ARK Invest has sold $39 million worth of Coinbase shares and GBTC shares since the beginning of the week

06.12.2023 - 13:57

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3 min

What’s new? Headed by Cathie Wood, investment firm ARK Invest again has sold shares of the Coinbase (COIN) crypto exchange and bitcoin trust shares of asset management firm Grayscale (GBTC), earning a combined $39,2 million. At the same time, the company bought another 9,586 shares of online broker Robinhood (HOOD) for $100,000 in addition to the $3.14 million investment in HOOD made last week.

Material by The Block

What else is known? On December 5, ARK sold 237 572 COIN worth $33,3 million. These securities were in the portfolios of three exchange-traded funds (ETFs) focused on companies in the financial technology sector. ARK sold $1,4 million worth of COIN a day earlier. Last week it realized $15 million in proceeds from the sale of exchange-traded securities.

According to TradingView, on December 4, the price of COIN was climbing to its highest since last April ($140,2). However, that mark is still 60% below the all-time high set at the peak of the bullish crypto market in November 2021.

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Also, on December 5, ARK sold $5,9 million worth of 168 127 GBTC shares from its Next Generation Internet ETF. On November 24, the company sold 94 624 securities from the same fund for $2,8 million.

The sales followed a significant reduction in the discount on the shares relative to the value of bitcoin itself. In late November, the figure fell below 10% for the first time since July 2021, when the company stopped redeeming the shares. They are now only traded on the over-the-counter (OTC) market, but their value has risen 327% since the beginning of the year.

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A significant role in this was played by the excitement around spot bitcoin ETFs, whose admission to the US market is expected by many retail and institutional players. Grayscale also intends to convert GBTC into a spot ETF, but so far no such product has received approval from the securities regulator.

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