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Ark Invest Continues Taking Profit on COIN Stock as Coinbase Contests SEC Claims

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Global asset manager Ark Invest on Monday added to last week's Coinbase (COIN) stock sales, taking even more profit early in the week off the upbeat market prices. The Florida-based investment management firm offloaded $26.3 million worth of the exchange's shares, going by the day's closing price of $105.50. COIN's latest gains are part of the broader market rally heading into the weekend as speculators reacted to Thursday's ruling on the Ripple case.

Doubling down on profit taking

In the most-immediate previous dump last week, the asset management company led by CEO Cathie Wood executed a sale of shares worth just over $50 million going by the market close of $105.31 per share. Ark Invest relinquished a total of 478,356 shares across its trio of exchange-traded funds (ETFs) on Friday for roughly $50.38 million as the exchange stock surged to a year-to-date high of $112.17.

COIN share price at the end of last week

More than half (263,247 shares) sold were drawn from its flagship ARK Innovation ETF (ARKK), another 93,227 shares from the ARK Next Generation Internet ETF (ARKW), and 121,882 shares more from the ARK Fintech Innovation ETF (ARKF).

This week's sale of 248,838 COIN shares marks the fund manager's third sale of Coinbase stock recently, motivated by the share's impressive uptrend off the back of last week's ruling in the Ripple case. Latest records show that 127,266 shares were from the flagship fund ARKK on Monday, while the ARKW and ARKF sold 44,784 and 76,788 shares, respectively.

To learn more about Ripple, check out our Investing in Ripple guide.

Previous sales in 2023

The ARK Innovation ETF earlier this month sold 135,152 Coinbase shares worth $12 million on July 11 as the share price climbed past the $90 mark. A previous transaction involving ARK Fintech Innovation ETF in March was the first time the investment firm offloaded its Coinbase stock this year. Ark dumped 160,887 Coinbase shares for $13.5 million at the time after a three-month run of actively taking up more position in the publicly traded exchange.

COIN is currently up 210%+ since the start of the year. Source:TradingView

In a late Monday interview on Bloomberg Markets, CEO Wood said the recent sales are a display of the firm taking profits with plans to reallocate the capital. Wood held to her optimistic and overall bullish view on Coinbase, “especially in light of the court ruling for Ripple,” which has already roused markets. She added that cryptocurrency exchanges would also benefit broadly as well.

“There were some puts and takes, but by and large, very positive for exchanges.”

The CNN Business dashboard shows that Ark is still the among the largest claimers of Coinbase shares with a stake position of 6.5%, only behind the Vanguard Group. Worth noting, Coinbase (COIN) stock has also benefitted from another catalyst in the market – the exchange's listing as a surveillance-sharing partner for several spot bitcoin ETF applicants, including those by BlackRock and Fidelity.

Coinbase CEO pursues clarity around digital assets legislation

Bloomberg reported on Monday that Coinbase CEO Brian Armstrong will meet Democrats in the House of Representatives in Congress. Per the sources – Democratic aides aware of the arrangement – the caucus will happen behind closed doors early Wednesday and will focus on crypto legislation, among other issues. Reports of the confab plans come as Coinbase engages the US securities regulator (SEC) after the agency filed a lawsuit against the exchange last month for being in violation of federal securities law.

Last Friday, Coinbase announced the suspension of retail staking services in four states – New Jersey, California, South Carolina and Wisconsin. In its research report, Germany-headquartered private bank Berenberg cautioned investors that the worst isn't yet behind, drawing attention to more regulatory challenges the exchange could face. The bank's analysts specifically highlighted the Coinbase Earn product, through which the exchange offers retailers staking services, as an easy target for the securities market watchdog.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.