Cathie Wood-led Ark Investment Management on Tuesday liquidated a large chunk of Coinbase Global, Inc. COIN shares amid a sell-off in the cryptocurrency exchange triggered by reports of an SEC probe into the listing of unregistered securities in its platform.
Ark’s Unprofitable Trade: Ark sold 1.42 million Coinbase shares, with its flagship ARK Innovation ETF ARKK dumping 1.13 million shares and the ARK Next Generation Internet ETF ARKW selling 174,611 shares. The ARK Fintech Innovation ETF ARKF disposed of 110,218 shares.
Shares of Coinbase tanked 21% to close at $52.93 on Tuesday, taking their year-to-date losses to 79%. Ark had purchased COIN shares at an average cost of $254.65, according to Unusual Whales, and this suggests Ark may have lost about $280 million on the trades.
Coinbase weightings in the ARKK, ARKW, and ARKF are currently at 2.93%, 4.91% and 5.87%, respectively. The stock is ARKK's fourteenth-biggest holding and the seventh and fifth biggest holding, respectively, for ARKW and ARKF.
Coinbase has been on a downslide since last week, retreating from $79 on Wednesday to a low of $52.63 on Monday, a peak-trough decline of about 33%.
Other Key Trades: Ark, meanwhile, bought the dip in Canadian e-commerce retailer Shopify, Inc. SHOP. ARKK bought 1.3 million shares of Shopify, ARKW picked up 201,546 shares, and ARKF added 238,088 shares, with the combined purchase price valued at $55.7 million.
Shopify shares plunged 14.06% to $31.55 Tuesday after reports of a 10% global workforce layoff.
Ark also bought a cumulative 584,540 shares in Roku, Inc. ROKU, valued at $46.7 million.
ARKK closed Tuesday’s session down 4.78% at $43.47, according to Benzinga Pro data.
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