By NewsBTC - 9 months ago - Reading Time: 2 minutes
Coinbase Stock Surges Nearly 10% Despite Cathie Wood’s Ark Invest $12 Million Sale
Coinbase, one of the leading cryptocurrency exchanges has experienced a surge in its stock price, despite a large sale of shares by Cathie Wood’s Ark Investment Management LLC.
On July 11, Ark Investment Management sold approximately 135,152 Coinbase shares, worth around $12 million. This marked Cathie Wood’s first sale of Coinbase shares since July 26, after nearly 11 months of consistently buying up the stock.
Cathie Wood’s Ark Investment Management Sells Significant Stake In Coinbase
Cathie Wood’s investment in Coinbase solidified Ark Investment Management as one of the major stakeholders, ranking fourth in terms of Coinbase shares held. However, the recent sale by Ark Investment Management suggests a shift in strategy as the firm decided to put a pause on its buying spree.
Notably, Cathie Wood’s Coinbase stock buying frenzy came at a time when the crypto market was in a period of uncertainty, specifically during the regulatory scrutiny from the US Securities and Exchange Commission (SEC), the fallout from the FTX exchange, and an increase in bankruptcy cases which cast a shadow over investor sentiment.
Though there are no specific reasons why Cathie Wood has decided to sell a large portion of its Coinbase shares, this move can be attributed to being a reflection of a calculated response to the current market conditions.
Over the past month, the US regulator has intensified its scrutiny of the industry and this intensification has impacted even larger players in the industry such as Binance and Coinbase. Both exchanges saw the US SEC file a lawsuit against them over the alleged offering of unregulated securities.
COIN Buck The Trend
Despite the large sale of Coinbase’s shares by Ark Investment Management, the market reacted unexpectedly as the stock price defied expectations and surged by nearly 10% in just one day. Particularly, over the past 24 hours, Coinbase shares saw an increase of 9.78%, reflecting a positive investor sentiment.
The stock has seen an increase from the $46 level which it traded at early in June, to trading at a price of $91.54, at the time of writing. The performance of Coinbase’s stock is noteworthy, considering the context of the crypto market.
Since the beginning of the year, Coinbase’s stock has been on an upward trajectory, with its stock surging more than 150%. This increase has outpaced the overall cryptocurrency market, which has gained around 50% in the same period.
Coinbase’s performance reflects the confidence of investors in the platform and its ability to navigate the challenges and opportunities within the crypto industry. It is worth noting that while Coinbase’s stock has surged nearly 10% in the past day, the global crypto market has only seen a mere 0.5% increase over the same period.
Featured image from iStock, Chart from TradingView
Original source: NewsBTC