ARK Invest trims Coinbase stock positions by $26.3 million

The ARK Invest funds ликвидировали positions in Coinbase shares by $26.3 million. The sale was the third in the last seven days.

The funds effected the following actions:

• The flagship ARK Innovation ETF sold 127,266 shares;
• ARK Next Generation ETF — 44,784 shares;
• ARK Fintech Innovation ETF — 76,788 shares.

The catalyst for the deals could be the further rise in the bitcoin-exchange capitalisation due to a reassessment of its prospects after the verdict in the case ruled by the SEC against Ripple.

On July 13, the Southern District of New York ruled, that programmatic sales and other distributions of the XRP token XRP do not constitute an offer or sale of investment contracts. The litigation had been ongoing since December 2020.

CEO Cathie Wood explained the moves as simple profit-taking and capital reallocation into lagging stocks. She reiterated a positive stance on Coinbase in light of the recent Ripple news.

An additional driver of positive momentum could be news surrounding applications to launch spot Bitcoin-ETFs.

On June 30, WSJ sources reported that the SEC returned the documents, as they did not contain sufficient information regarding the so-called joint oversight agreement or details of this mechanism. The latter became a key addition to BlackRock‘s proposal.

The next day Bloomberg reported that Invesco, VanEck, 21Shares, WisdomTree and Fidelity naправили revised filings to the Commission in light of regulator criticism.

The listed firms included mention that the exchange Coinbase would provide support for joint oversight.

On July 17, Coinbase shares closed at $105.55. In the previous session, the quotes rose to $114.43. Since the start of the year the platform’s market capitalisation has risen by 198.25%.

On July 11, ARK Invest funds divested 135,152 Coinbase securities (~$13.4 million), and on July 14 — a further 392,140 Coinbase securities (~$53 million).

According to JPMorgan, the verdict could affect 13 tokens that are actively traded on the platform, which the SEC labeled securities in the lawsuit against the company.

Recall that Coinbase announced the relisting of XRP. Trading of the asset by the exchange had halted in December 2020 immediately after the SEC’s lawsuit against Ripple.