High-profile investor Cathie Wood has used a big rally in shares of Coinbase Global Inc. to book some profits, with her exchange-traded funds selling more than $150 million worth of the cryptocurrency exchange’s stock over the past three days.
Coinbase’s stock
COIN,
has been on a tear over the past couple of weeks, amid a surge in bitcoin prices and after the company reported a quarterly profit that blew past expectations.
The stock had soared 28.4% over a three-day winning streak through Friday and had rocketed 53.7% over a nine-day stretch in which it has gained eight times, marking the biggest nine-day gain in 13 months.
The rally comes as bitcoin
BTCUSD,
had shot up 22.5% over the past nine sessions to close Friday at a more than two-year high.
Three of Wood’s ETFs — ARK Innovation ETF
ARKK,
ARK Net Generation Internet ETF
ARKW
and ARK Fintech Innovation ETF
ARKF
— sold a total of 875,979 Coinbase shares during their three-day winning streak.
Based on the stock’s closing prices on the days the shares were sold, the value of the sales would total $151.3 million.
On Monday, Coinbase’s stock pulled back 2.7% in morning trading, while bitcoin gained 0.4%.
Even after the sales, Coinbase remains the largest holding of all three of the ARK ETFs. For Wood’s flagship ARK Innovation ETF, Coinbase’s weighting was 9.57% as of Friday. The second-largest holding, electric-vehicle giant Tesla Inc.
TSLA,
was weighted at 8.21%.
In total, Wood’s ETFs have bought 248,787 Tesla shares so far in February, valued at $46.4 million. Tesla’s stock shed 1.9% on Monday.
Also read: Tesla’s stock had its worst month in a year, but Cathie Wood’s ETFs kept buying
The ETF also sold a total of 480,166 shares of trading app Robinhood Markets Inc.
HOOD,
on Friday, which would be valued at about $6.7 million. Robinhood’s stock had hiked up 18.2% over the previous three sessions to close Friday at a two-year high.
That is more than all the Robinhood shares the ETFs had previously bought in February. Over multiple days up to Feb. 13, the ETFs had bought a total of 411,117 shares valued at about $4.5 million.
Robinhood’s stock tacked on 0.8% in morning trading Monday.
Separately, the ETFs have sold a total of 27,661 shares of Nvidia Corp.
NVDA,
in February, with the last sales coming on Feb. 15. The value of the shares sold was about $19.9 million.
Nvidia’s stock fell 2.7% on Monday, putting it in danger of its first three-day losing streak since the three-day stretch that ended Dec. 4. The semiconductor and artificial-intelligence play is scheduled to report fourth-quarter results after Wednesday’s closing bell.
Read the full article here