© Reuters.
NEW YORK – ARK Investment Management, known for its focus on innovation and disruptive technologies, has reduced its stake in cryptocurrency exchange Coinbase (NASDAQ:). The move was driven by a need for portfolio rebalancing after Coinbase more than doubled in value over the past quarter, exceeding the 10% holding limit imposed by ARK under the fund’s policy. ARK Innovation ETF (NYSE:ARKK) and ARK Next Generation Internet ETF (NYSE:ARKW) sold a total of 166,183 shares of Coinbase, valued at approximately $25.3 million.
The move comes amid a broader slowdown in the crypto market triggered by a collapse in and leverage chasing. On Wednesday, Coinbase saw its stock price fall 2.96% to $152.24.
The US Securities and Exchange Commission’s (SEC) skepticism towards Bitcoin Spot ETFs is one of the main factors contributing to market anxiety. In the wake of these concerns, the value of bitcoin fell to $42,055.
ARK’s decision to sell part of its holdings in Coinbase comes at a time when the investment firm is closely following developments in the cryptocurrency space, known for its high volatility.
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