ARK Invest, an investment solutions provider and one of Coinbase’s largest institutional backers, sold about 500,000 shares of the Nasdaq-listed centralized cryptocurrency exchange for about $90 million on Friday.
Cathie Wood’s investment firm unloaded a total of 499,149 COIN shares from its exchange-traded fund. Specifically, 397,924 shares were sold in the ARK Innovation Exchange Traded Fund (ARKK), 45,433 shares in the ARK Next Generation Internet ETF (ARKW), and 55,792 shares in the ARK Fintech Innovation ETF (ARKF).
The massive sell-off comes after Coinbase received multiple analyst upgrades from KBW, Wedbush, Canaccord Genuity, JPM Securities, and others due to better-than-expected fourth-quarter results.
JP Morgan analyst Kenneth Worthington took a less positive stance, acknowledging both strengths and weaknesses, claiming the company “remains uncertain about the actual revenue impact.” This view contrasts with Coinbase’s positive outlook on participation in U.S. spot Bitcoin ETFs.
Worthington also criticized the exchange’s lack of clarity about its ETF management services.
Meanwhile, the cryptocurrency exchange’s stock price rose about 27% last week.
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