Cathie Wood’s investment management firm Ark Invest further reduced holdings in COIN shares ahead of crypto exchange Coinbase’s Q2 earnings report. The fall in Bitcoin price and crypto sentiment have resulted in low trading volumes on exchange, with COIN price on average trading at $230 for the last six months.
Cathie Wood Sells Coinbase Shares
Cathie Wood’s Ark Invest sold 2046 Coinbase shares worth nearly $450K on Friday, as per trades seen by CoinGape. The Ark Fintech Innovation ETF (ARKF) offloaded these shares amid continued bearish sentiment in the crypto market.
Crypto Fear and Greed Index has dropped to 25 (extreme fear) from 70 (greed) as Bitcoin and altcoins crashed to February-low. However, the overall outlook of the crypto market remains bullish and traders expect a recovery in the upcoming months due to high odds of Fed rate cuts in September. Historically, the third quarter has always been dull for the crypto market and it explains the reason behind the selloff by ARKF.
Ark Invest funds have continued to sell COIN shares and shifted funds to other shares as part of active management strategy. Despite the latest selloff, Coinbase remains the top holding in the ARKF worth with weightage of 10.28% worth more than $90 million.
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Coinbase Earnings Adds As Another Factor
The recent COIN shares selling by Cathie Wood’s ARK Invest fund raises concerns over possible further selloff due to Coinbase Q2 earnings due August 1.
Wall Street analysts have offered a pessimistic outlook on Coinbase earnings as they expect a 31% decline in EPS, as reported by CoinGape. The company has recorded rising revenue and net income for three consecutive quarters. However, Yahoo Finance estimates offered a pessimistic outlook, with EPS for the quarter expected at $1.06.
COIN price closed 1.58% higher at $218.02 on Friday after positive macro and rebound in Bitcoin. The price plunged 12% in a month due to bearish sentiment in the crypto market.
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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
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