Ark Invest Trims Coinbase Holdings Before Q2 Report

Cathie Wood's Ark Invest sold 2,046 Coinbase shares worth about $450,000 before the exchange’s Q2 earnings report.

This decision follows a drop in Bitcoin prices and negative market sentiment, which led to lower trading volumes on Coinbase. The stock has averaged around $230 over the past six months.

The Crypto Fear and Greed Index dropped to 25 (extreme fear) from 70 (greed), with Bitcoin and other cryptocurrencies hitting their lowest levels since February.

Despite this, there is optimism for a recovery due to potential Fed rate cuts in September. Historically, the third quarter is slow for crypto markets, explaining ARKF’s recent selloff.

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Even after these sales, Coinbase remains ARKF’s top holding, making up 10.28% of its assets.

The reduction in COIN shares suggests concerns about Coinbase’s Q2 earnings report on August 1. Analysts predict a 31% drop in EPS to $1.06.

Despite rising revenue and net income for three quarters, the outlook is cautious. COIN closed 1.58% higher at $218.02 on Friday but has fallen 12% over the past month due to negative market sentiment.

Alexander Stefanov