Cathie Wood has been right about Coinbase (NASDAQ:COIN) in the past, although the timing of some previous buys and sells may still be questioned by her followers. Still, her accumulation of COIN stock during the previous bear market in crypto has allowed Wood to cash out. And cash out she has.
Wood’s daily transactions show that the the famous investor’s Ark Next Generation Internet ETF (NYSEARCA:ARKW) disposed of more than 9,000 Coinbase shares over the past trading day. Those shares were worth around $2.3 million at current prices.
If this was a one-time thing, it probably wouldn’t matter. Indeed, that’s a small amount of money across all the Ark Invest funds for investors to even consider remotely noteworthy. However, these sales have been a trend of late. Yesterday, two other Ark exchange-traded funds also sold over 96,000 shares combined, per Cathie’s Ark. Two days ago, Wood’s Ark funds divested $150 million of COIN stock as well.
Let’s dive into what to make of these recent moves.
COIN Stock Flat, As Cathie Wood Selling Cointinues
There’s no doubt Coinbase has had a nice run over the past year or so. And 2024’s returns have been particularly remarkable, with COIN stock surging more than 60% on a year-to-date (YTD) basis alone. You can’t blame someone with gains for locking in those gains, ever.
Still, investors may be wondering about the timing of these transactions. After all, crypto is still pumping higher and new all-time highs are in sight for most of the top cryptocurrencies.
In such an environment, one might think that Cathie Wood would be doubling down. Indeed, she’s been a proponent of picking up high-growth stocks at what she sees as excellent valuations. And while Coinbase’s valuation has certainly gotten more stretched after its run, one could make the argument that it’s potentially much better valued given its improved fundamental outlook.
I’m not so sure following any active manager in and out of trades is a good idea. Some will win and most will lose, with index funds beating the vast majority of money mangers over the long term. So, if you like Coinbase for its business model and believe in crypto, I’d just hold on for the ride for now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
