Ark Invest sold off an estimated 106,000 Coinbase shares valued at over $27 million on Tuesday, marking the investment firm’s latest COIN dumping under the direction of CEO Cathie Wood.
Ark Invest’s Significant Coinbase Sell-Off Continues
The now offloaded shares reportedly came from its ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW).
Cathie Wood and Ark Invest\'s trade activity from today 3/12 pic. .com/Qo3koarip6
— Ark Invest Daily (@ArkkDaily) March 13, 2024
The investment company’s latest move comes just one day after its nearly $69 million Coinbase sell off despite Ark Invest being the second largest holder of the cryptocurrency exchange platform’s stock.
Bitcoin Hits All-Time High Amidst Latest Rally
Ark Invest’s COIN offloading coincides with the dramatic surge in bitcoin’s value as the token exceeded $73,000, marking an all time high for the cryptocurrency.
Bitcoin’s all-time high follows its last rally in January 2024 after the United States Securities and Exchange Commission’s (SEC) approval of nearly a dozen spot bitcoin ETF applicants.
Wood has previously expressed her own bullish expectations about Bitcoin. In January, the Ark Invest CEO told CNBC she predicts the token has the potential to hit over $1.5 million by 2030.
“That target — it was before the SEC gave us the green light, and I think that was a major milestone, and it has pulled forward the timeline,” she said.
Many crypto enthusiasts expect that the federal agency’s approval of the cryptocurrency could signal mainstream adoption of bitcoin across the country, with a number of traditional banks exploring their own opportunities within the space.
“Our target is above that; it’s well above that,” Wood continued, citing “new expectations for institutional involvement” as well as the belief that “incremental price that we assume for institutions actually has more than doubled.”
Traditional Banks To Play Greater Role In Crypto Post SEC Spot BTC Approval?
On Monday, FDIC Vice Chairman Travis Hill criticized the SEC’s controversial accounting bulletin known as SAB 121 due to its requirement that banks must list custodied digital assets on their balance sheet while effectively limiting their role across the digital asset ecosystem.
Hill commented on the SEC’s accounting bulletin: “This treatment sharply departs from how custodians account for all other assets held in custody, which are generally held off-balance sheet and treated as the property of the customer, not the custodian.”
He further stated, “On-balance sheet recognition triggers the full panoply of capital, liquidity, and other prudential requirements only for bank custodians, which makes it prohibitively challenging for banks to engage in this activity at any scale.”
A bill passed by the House Financial Services Committee that would overturn SAB 121 is currently awaiting a vote on the House floor.