Cathie Wood’s Ark Invest recently made significant moves in the crypto and stock market, offloading millions of dollars’ worth of Coinbase and Robinhood shares as both stocks experienced a decline at market close.
According to the latest trade filing, the firm’s ARK Innovation ETF sold 26,301 shares of Coinbase Global Inc. and 341,592 shares of Robinhood Markets Inc. The ARK Next Generation Internet ETF also offloaded 4,980 Coinbase shares and 23,838 Robinhood shares on the same day.
The decline in both Coinbase and Robinhood stocks occurred as investors reacted to the news of the U.S. approval of spot Bitcoin ETFs, which began trading on the same day. Notably, Coinbase serves as a crypto custodian for several of these ETFs, and Robinhood has started offering spot Bitcoin ETFs for clients with retirement and brokerage accounts.
Coinbase shares closed down 6.7% at $141.16, while Robinhood ended the day lower by 3.5% at $11.71. This was accompanied by Bitcoin’s price surge above $48,000 before dropping to around $45,800 on the same day, reflecting ongoing volatility in the cryptocurrency market.
On the first day of trading for spot Bitcoin ETFs, the total trading volume for the 11 instruments amounted to approximately $4.53 billion. BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust, emerged as the top performer among new issuers, with a trading volume of around $1 billion. Grayscale’s spot Bitcoin ETF, a conversion of its flagship GBTC fund, recorded $2.28 billion in trading volume on the same day. It is worth noting that there is speculation that most of Grayscale’s volume could be “all selling,” according to Eric Balchunas, senior ETF analyst of Bloomberg Intelligence.
These recent developments shed light on the rapidly evolving landscape of cryptocurrencies and highlight the impact of regulatory decisions and market dynamics on crypto-related stocks and assets. As the crypto industry continues to mature, monitoring the actions of institutional investors such as Ark Invest can provide valuable insights for market participants and enthusiasts.
