In response to the soaring performance of Coinbase’s (COIN) stock, ARK Invest, led by Cathie Wood, has made the decision to sell $12 million worth of Coinbase shares. 

Quick facts:

  • Cathie Wood’s ARK Invest sells $12 million COIN shares as stock price surges to a new yearly high.
  • Cboe and Coinbase market surveillance agreement drive COIN market rally.
  • Growing optimism for a spot BTC ETF approval driving market growth.

The move comes as Coinbase’s stock reaches a near one-year high following the exchange’s announcement of a surveillance-sharing agreement with five spot Bitcoin exchange-traded fund (ETF) applicants.

Coinbase’s stock experienced a remarkable rally, closing up 16% after the announcement. The Securities and Exchange Commission (SEC) had previously indicated that comprehensive surveillance-sharing agreements were crucial for the approval of spot Bitcoin ETFs.

Coinbase’s recent agreement aligned with this requirement, driving investor optimism.

ARK Invest, known for its focus on technology investments, holds a significant position in COIN, owning close to 11 million shares across its various funds. This makes ARK Invest one of the largest holders of COIN. 

The COIN holding represents approximately 6.2% of the total fund weightage for ARK Invest, highlighting its substantial investment in the company.

COIN Holdings: Cathie’s ARK

Interestingly, ARK Invest had previously capitalized on a dip in Coinbase’s stock due to the SEC’s lawsuit against the exchange. In early June, ARK Invest purchased $21.6 million worth of COIN shares at a discounted price. 

Since then, COIN has rebounded impressively, surging by 72% and closing nearly 10% higher at $89.15 on Tuesday.

The recent decision by ARK Invest to sell $12 million worth of COIN reflects its strategy of capitalizing on market movements. 

Coinbase and Cboe Collaborate for Bitcoin ETF Applications

In a strategic move to enhance their chances of securing approval for Bitcoin exchange-traded funds, exchange operator Cboe Global Markets has partnered with cryptocurrency trading platform Coinbase. 

Cboe has filed amended applications with the US SEC to list and trade shares of three spot Bitcoin ETFs, including one backed by Fidelity. These amended applications now include surveillance-sharing agreements with Coinbase, a significant player in the crypto industry.

The partnership aims to address the SEC’s concerns regarding fraudulent and manipulative practices and the protection of investors and the public interest. The SEC has rejected numerous spot Bitcoin ETF proposals in the past, asserting that they fail to meet the required standards. 

The news of the partnership has had a positive impact on COIN performance. On Tuesday, Coinbase shares closed up 9.8% at $89.15, reaching their highest level since August 16 of the previous year. This surge in value reflects investor confidence in the potential success of the amended ETF applications.

While the SEC has been stringent in its evaluation of previous Bitcoin ETF proposals, the partnership between Cboe and Coinbase holds promise for a more favorable regulatory outcome. 

By leveraging Coinbase’s expertise in the cryptocurrency space, the amended applications are expected to present a stronger case for approval, ultimately providing investors with regulated access to Bitcoin through ETFs.

The move also aligns with the growing demand for Bitcoin investment opportunities within the traditional financial ecosystem. ETFs offer a familiar investment vehicle for institutional and retail investors, facilitating broader participation in the crypto market while adhering to regulatory frameworks.

About Arnold Kirimi

Arnold is a Web3 journalist who has been active in the blockchain sector since 2016. He enjoys talking about blockchain and its implications for the future of humanity. You can follow me on Twitter and Linkedin

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