Are Coinbase Shares About to Tank?

ARK Invest, led by Cathie Wood, has recently offloaded a substantial number of shares from the cryptocurrency exchange Coinbase, raising questions about the future of Coinbase’s stock. On January 5, ARK Invest sold 133,823 Coinbase shares, as the stock price fluctuated around the $153 mark throughout the trading day.

Details of these transactions, posted by ARK Invest on X (formerly known as Twitter) on January 8, reveal that the sales were distributed across several of ARK’s ETFs. The ARK Innovation ETF (ARKK) parted with 107,151 Coinbase shares, the ARK Next Generation Internet ETF (ARKW) sold 15,892 shares, and the ARK Fintech Innovation ETF (ARKF) divested 10,780 shares. The combined value of these sales approximated $20.6 million.

This recent activity is part of a continuing trend, as ARK also disposed of 166,000 Coinbase shares on January 3, worth about $25 million, and another 237,000 shares on December 5, 2023. In total, ARK Invest has cashed in around $78 million from selling Coinbase shares in December and January.

Why are these transactions important? It might show that Wood believes that the introduction of Bitcoin ETFs will bring pressure on spot exchanges.

Despite these divestments, Coinbase remains a significant holding in ARK’s ETF portfolios. It is the largest asset in the ARKK ETF, making up 10.04% of the fund, the largest in the ARKW ETF at 10.37%, and the leading asset in the ARKF ETF at 13.41%.

ARK Invest’s sell-off comes at a time when the crypto community is eagerly awaiting the SEC’s decision on the approval of the first spot Bitcoin ETF in the United States. ARK Invest itself is a contender in this race, having filed for a spot Bitcoin ETF in collaboration with Swiss firm 21Shares, known for its cryptocurrency exchange-traded products. The ARK 21Shares Bitcoin ETF was among the first to submit its updated filing before the SEC’s December 29 deadline.

A registration notice for the ARK 21Shares Bitcoin ETF was filed with the SEC on January 4, with the SEC having a deadline of January 10 to either approve or deny the ETF application. This development is being closely watched as it may have significant implications for the cryptocurrency market in the U.S.

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)

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What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
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The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

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What is the goal of this portfolio?

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.

This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.

To give an update on the position, each one listed in low to high relative risk:

SoV/money == BTC, DCR

Platforms == ETH, XTZ

Private Money == XMR / ZEC / ZEN

DeFi == MKR / SNX and stablecoins

It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

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