Cathie Wood sells Coinbase for the first time in almost a year

(Bloomberg) – Cathie Wood’s Ark Investment Management LLC reduced its stake in Coinbase Global Inc. for the first time in nearly a year on Tuesday.

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Wood’s flagship Ark Innovation ETF on Tuesday sold 135,152 shares of the cryptocurrency exchange operator, marking its first stock sale since July 26, according to data from Ark Investment Management LLC compiled by Bloomberg. .

Ark is Coinbase’s fourth-largest holder and had bought the stock down in price for nearly 11 months until June. He continued to build on his stake during crypto market volatility triggered by issues including the US regulatory crackdown on the industry, the collapse of Sam Bankman-Fried’s empire, and a string of bankruptcies. .

Ark cut its stake in Coinbase on a day the stock rose 9.8% after a filing with the Chicago Board Options Exchange added to optimism over the potential US approval of a Bitcoin ETF. While still a big holder, the Wood fund’s reduction in its stake could signal to other investors the prospect of profiting from the stock’s rally this year.

Coinbase is up more than 150% this year, in line with a broader rebound in cryptocurrency-related stocks, even as it faces a lawsuit from the Securities and Exchange Commission. It had fallen by 86% last year.

Wood’s flagship fund is up 51% this year, compared to a 38% gain for the Nasdaq 100 index and a 16% gain for the S&P 500. ETF Ark Innovation fell 67% last year .

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