Technology-oriented investment manager ARK Invest is considered one of the largest holders of Coinbase (COIN) shares.
The company owns more than 10.5 million shares, and for a long time, the company was happy to continue to accumulate shares and continue buying more.
However, starting last week, the company began selling Coinbase shares, dumping them twice so far.
ARK Invest Benefits from Recent Coinbase Rally
ARK first sold a portion of its shares on July 11, last Tuesday. He received $12 million in return, following the share’s rally to a one-year high of around $89. He then made another sale on July 14, selling another $50.5 million to cash in on the still-ongoing rally, bringing Coinbase’s stake to $107.
ARK sold more than 480,000 COIN shares across three different funds.
With another 10.5 million shares, the company remains one of Coinbase’s largest shareholders.
As for the surge that started, it all came after the company entered into several surveillance sharing deals, including the one with BlackRock.
Coinbase Stocks Rise on Watchsharing Deals
BlackRock sought the deal after the US SEC rejected its Bitcoin ETF proposal, noting there was a problem with the company’s surveillance plan.
BlackRock selected Coinbase as a partner to remedy the problem and then re-introduced its Bitcoin spot ETF.
Prior to this, Coinbase shares were shaky due to the SEC’s lawsuit against the exchange on June 5.
The partnership with BlackRock helped COIN shares solidify and start a rally.
ARK Invest then used the rally to profit by selling the shares, likely fearing they would tank again if the SEC rejects BlackRock’s proposal a second time.
Several other companies decided to enter into a similar shared watchdog agreement with Coinbase and resubmit their own ETFs, which were also rejected by the SEC, mainly for the same reason as BlackRock.
Will the United States finally get its own Bitcoin ETF?
Many are hopeful that the US SEC will finally approve at least one Bitcoin spot ETF proposal, as all the issues that the SEC had pointed out in the past have been resolved.
With Coinbase partnerships, even the newest issue the regulator had identified was fixed.
That being the case, the SEC has no other clear reason to reject the proposals, which is why it agreed to consider BlackRock’s new filing.
As for ARK Invest, it is unclear if the company plans to continue selling its Coinbase shares or if the two sales so far will be the last for the foreseeable future.
