Coinbase Global stock witnessed a second consecutive day of decline on Thursday. The recent sell pressure can be attributed to profit-taking by funds following the surge in the shares of the crypto broker during a rally alongside Bitcoin and other tokens.
Despite experiencing a surge of over 50% in the past month, paralleling Bitcoin’s 25% price increase, Coinbase’s stock has weakened. It dropped by 4% on Wednesday and an additional 2.6% during pre-market trading on Thursday.
FactSet data reveals that exchange-traded funds (ETFs) managed by Cathie Wood’s Ark Investment Management, which owns approximately 5.5% of Coinbase, have been actively selling shares. The flagship ARK Innovation ETF alone sold 162,579 shares valued at around $22 million, as indicated in an email update from the trading desk on Wednesday. Furthermore, the ARK Next Generation Internet ETF and Ark Fintech Innovation ETF collectively sold an additional $2.5 million worth of stock.
Despite facing historically low trading volumes and significant regulatory pressures within its core token brokerage business, Coinbase’s shares have seen an impressive gain of more than 280% this year. This substantial increase far surpasses the gains made in cryptocurrencies themselves. Interestingly, recent data indicates that short-sellers who bet against Coinbase have been left to suffer losses.