Ark Investment Management, helmed by Cathie Wood, recently divested substantial shares in Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC) as both entities marked new 52-week highs. The move indicates a strategic shift within Ark Invest’s portfolio from cryptocurrencies to emerging sectors like artificial intelligence (AI).

Shift in Investment Strategy

Ark Invest, led by prominent investor Cathie Wood, made notable moves in its investment portfolio, reducing its exposure to Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC) shares. This decision comes amid the rising prices of both COIN and GBTC, which have reached new year-long highs. The company has redirected its focus toward emerging technologies like AI, signifying a strategic shift from the crypto sphere.

COIN Shares Sale

On December 13, Ark Invest sold a substantial number of COIN shares, totalling 283,104, amounting to nearly $43 million in value. The ARK Innovation ETF (ARKK) divested 239,237 COIN shares, while the ARK Next Generation Internet ETF (ARKW) offloaded the remaining 45,864 shares.

Coinbase’s price surged by 7.76% on Wednesday, closing at $150.46, touching a new 52-week high of $150.65. This surge followed the U.S. Federal Reserve’s decision to maintain interest rates and hint at potential rate cuts in the near future. Amid the market recovery, traders have consistently shown optimism, buying into the dips.

Consistent GBTC Offloading

Ark Invest’s divestment extended beyond COIN shares to include the Grayscale Bitcoin Trust (GBTC). On December 13, the ARK Next Generation Internet ETF (ARKW) further sold 45,864 GBTC shares, totalling $1.6 million.

This came after a significant selloff on December 11 when ARK Next Generation Internet ETF (ARKW) disposed of 395,945 GBTC shares, representing a $13 million sell-off. These consistent sell-offs by Ark Invest in GBTC align with the asset’s monumental price surge, closing at $35.59 on Wednesday and hitting a year-long high of $36.23, accumulating a year-to-date rally of 334.02%.

Ark Invest’s recent strategic divestment in both Coinbase and GBTC amid their price highs signals a calculated shift in the investment firm’s portfolio, redirecting its attention toward burgeoning sectors like AI.