ARK Invest Sells Off Coinbase Holdings
Cathie Wood’s Firm Responds to Market Shifts
ARK Invest, led by prominent investor Cathie Wood, has sold nearly half a million shares of Coinbase, the renowned Nasdaq-listed cryptocurrency exchange. This move, totaling approximately $90 million, was executed across three of its exchange-traded funds (ETFs) following a series of analyst upgrades recognizing Coinbase’s strong performance in the fourth quarter.
Detailed Breakdown of the Sale
Allocation Across ARK’s ETFs
The divestment included 397,924 shares from the ARK Innovation ETF (ARKK), 45,433 shares from the ARK Next Generation Internet ETF (ARKW), and 55,792 shares from the ARK Fintech Innovation ETF (ARKF), marking a significant reduction in its investment in one of its major holdings.
Analysts Rally Behind Coinbase’s Q4 Results
Mixed Reviews Yet Overall Positive Outlook
Coinbase’s fourth-quarter results surpassed expectations, prompting positive ratings from analysts at KBW, Wedbush, Canaccord Genuity, and JPM Securities. However, J.P. Morgan analyst Kenneth Worthington expressed caution, citing uncertainties in the firm’s earnings impact while recognizing its potential role in the U.S. spot Bitcoin ETF market.
Coinbase’s Market Performance and Operational Changes
Stock Price Surge and Strategic Adjustments
Coinbase’s stock enjoyed a nearly 27% increase last week, amidst operational changes like discontinuing native Bitcoin payments on its Commerce platform due to challenges. Lauren Dowling, head of product for Coinbase Commerce, highlighted the shift towards an on-chain payments protocol to alleviate customer concerns.
COIN Stock Receives Neutral Upgrade from JPMorgan
Coinbase’s Positive Trajectory Recognized by Investment Bank
The stock surge was further buoyed by JPMorgan’s upgrade of Coinbase Global (COIN) stock to neutral, following a 10% increase. Analyst Kenneth Worthington noted the exchange’s connection to the ongoing Bitcoin price momentum as a positive indicator for its valuation.
Caution Advised Against Coinbase Reset Fraud
Rising Concerns Over Crypto Scams
In light of Coinbase’s advancements and stock performance, customers are warned against phishing scams, particularly the Coinbase reset fraud, which targets users’ login credentials. Recent reports have highlighted significant losses due to such scams, underscoring the importance of vigilance in the crypto space.
