Cathie Wood’s Ark Invest Sells Coinbase (COIN) Stock Amid Insiders Sales Red Flag

Cathie Wood’s asset management firm Ark Invest did a major reshuffling to its portfolio on Monday, selling 3769 Coinbase (COIN) shares from its portfolio. The recent sell-off comes as the Coinbase stock shows signs of bounceback while gaining 11.2% on the weekly chart. Amid a strong recovery on Wall Street, the COIN stock gained 6.32% ending the trading session at $287.

Cathie Wood’s Ark Invest Dumps Coinbase Stock

On Monday, the Ark Fintech Innovation ETF (NYSEARCA: ARKF) sold a total of 3769 Coinbase stock worth $1.08 million from its total holdings. This quantity of COIN stock sold contributed only a 0.1% drop in the portfolio holdings and comes as part of periodic adjustments.

Last September, Ark Invest loaded Coinbase shares in big quantities just ahead of the mega rally in the COIN stock. Back then the share price was trading at just $150. However, since then the share price has appreciated by a massive 91% with Ark generating massive ROI within just four months of its investments.

Ark Investments is an early investor in Coinbase and continues to hold a large amount of COIN stocks even today. The Ark Fintech Innovation ETF (ARKF) that holds the Coinbase stock has delivered massive returns of 50% over the past year, along with investments in Shopify and Block Inc.

Under the leadership of Cathie Wood, the asset manager is likely to pursue more such investments. With Donald Trump taking the office at White House this month, Wood is even more optimistic about the US economy in the coming years.

Cathie Wood of Ark Invest highlighted that a restructuring of the U.S. SEC under Trump’s administration could significantly boost American innovation. She noted that new leadership at the SEC and FTC could pave the way for a transformative era of technological advancement in the U.S.

COIN Share Price Expectation for 2025

Amid the broader crypto market rally in 2024, Coinbase stock price has appreciated by a strong 80% over the past year. Market analysts expect this rally to continue further from here this year into 2025. On Monday, the Coinbase share price gained 6.32% ending the trading session at $287.

As the crypto exchange is preparing to release its Q4 earnings report, analysts have raised price targets for the same. As per analysts, the COIN stock can hit $400 ahead of its earnings report, which is another 37% upside from here. Favorable regulatory environment and crypto market euphoria under Donald Trump could serve as a catalyst for this.

Coinbase Insiders Are Selling the Stock

Apart from Ark Invest, there has also been more selling coming from Coinbase insiders in recent weeks. Last week on January 2nd, Coinbase CTO Paul Grewal offloaded 10,000 shares from his holdings netting more $2.57 million. As a result of this transaction, his stake in the company decreased by 12.59%, leaving him with 69,407 shares valued at approximately $17.82 million. Paul Grewal has been offloading his COIN stock holdings over the past few months.