TL;DR
- Coinbase stock surged around 45% in recent weeks to record highs, driven by ETF optimism and rising institutional demand.
- Despite the rally, ARK Invest sold roughly 135,000 COIN shares (about $52 million) from its ARKK and ARKW funds at peak prices.
- The sizable offload appears to be profit-taking, but it raises questions about the company’s near-term crypto exposure versus its long-term bullish stance.
Coinbase (COIN) stock is experiencing a remarkable surge, yet one of its most prominent early backers is choosing this moment to cash out significant holdings. This divergence highlights the complex and often contradictory signals within the crypto market.
Wow, $HOOD, $COIN and $RKLB going vertical now. All in the RV Pro portfolio (added to all via calls at April lows). $TSLA likely to follow.
Next step, crypto.
The liquidity spigot is wide, wide open…
— Raoul Pal (@RaoulGMI) June 26, 2025
Coinbase Soars to New Heights
Fueled by resurgent crypto prices, particularly Bitcoin, and renewed investor confidence, Coinbase shares have been on a tear. The exchange’s stock price recently smashed through previous records, achieving a fresh all-time closing high. Analysts point to a combination of factors: spot Bitcoin ETF inflows driving market activity, increasing institutional interest, and Coinbase’s perceived position as a primary beneficiary of the crypto market’s recovery.
Some market watchers are even describing the stock’s trajectory as “going vertical,” emphasizing the steepness and speed of its recent gains, which saw COIN climb roughly 45% in just a few weeks leading up to the record close.
ARK Invest Executes Major Sell-Off
Despite this overwhelmingly positive sentiment and surging price action, Cathie Wood’s ARK Invest made a significant move in the opposite direction. ARK’s flagship funds, ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW), actively sold off large chunks of their Coinbase holdings.
Reports indicate the sale amounted to over 135,000 shares, valued at approximately $52 million at the time of the transactions. This selling activity occurred directly as the stock was reaching its new peak.
Profit-Taking or Strategic Shift?
The company’s decision to sell into such strength naturally raises questions. The firm was a major early investor in Coinbase, accumulating shares during the prolonged crypto winter when sentiment was deeply negative. The most straightforward explanation is profit-taking: The company is locking in substantial gains after a period of significant appreciation.
However, given the Ark Invest’s vocal long-term bullishness on crypto and Coinbase’s role within that ecosystem, the scale of the selling prompts speculation. Could it signal a tactical portfolio rebalance, a reduction in overall exposure after the rapid run-up, or even a nuanced view of near-term volatility despite long-term conviction? Ark Invest has not publicly commented on the specific rationale behind the sales.
