In a strategic move, Ark Invest has sold over $29 million worth of COIN shares from its ETFs, as part of its portfolio rebalancing strategy. This decision is in line with Ark's target weighting policy and comes after Coinbase's impressive performance in the last quarter of 2023.
Ark Invest's Continued Selling of Coinbase Shares Reflects Portfolio Rebalancing
Ark Invest, led by CEO Cathie Wood, has been actively reducing its stake in Coinbase (Nasdaq: COIN) by selling shares. Despite the reduction, Coinbase remains one of the significant assets in Ark's portfolio.
On January 3, Ark sold a total of 166,183 COIN shares from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW), amounting to $25.3 million based on the closing price of the day. The following day, on January 4, Ark sold an additional 26,743 COIN shares valued at $4.16 million at its closing price.
These recent sales are part of Ark Invest's regular portfolio management strategy. The ETFs follow a target-weighted approach, ensuring that no individual holding exceeds 10% of the fund's total value. With COIN's price more than doubling in Q4 of 2023, it surpassed the 10% target in both ARKK and ARKW, leading to these sales. In fact, Ark had been selling COIN shares in December, including $33 million worth on December 5 and $42 million on December 13.
This move coincides with the upcoming announcement from the U.S. Securities and Exchange Commission (SEC) regarding spot bitcoin ETFs. Currently, the SEC is reviewing 13 proposed spot bitcoin ETFs, with the first deadline set for January 10 for the joint application submitted by Cathie Wood's ARK Invest and 21shares. Coinbase has also revealed its plans to launch spot Bitcoin and Ethereum products for international clients, with intentions to extend these offerings to retail investors in the near future.
Apart from its Coinbase holdings, Ark Invest has also made significant moves in other crypto-related areas. In late December, it sold its remaining holdings of Grayscale Bitcoin Trust (GBTC) worth $200 million and reallocated approximately half of the funds into Bitcoin Futures ETF Bito.
What are your thoughts on Coinbase's future performance if a spot bitcoin ETF is approved? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
How Does Gold Perform as an Investment?
The supply and the demand for gold determine how much gold is worth. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. There is also a risk in owning gold, as you must store it somewhere.
Is gold buying a good retirement option?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it’s worth considering.
Physical bullion bar is the best way to invest in precious metals. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
How does a gold IRA work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase physical gold bullion coins anytime. You don’t have a retirement date to invest in gold.
An IRA lets you keep your gold for life. When you die, your gold assets won’t be subjected to taxes.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a Gold IRA, you’ll need to first set up an Individual Retirement Account (IRA). Once you’ve done so, you’ll be given an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
Taxes will be charged on gold you have withdrawn from an IRA. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are some exceptions, though. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. Otherwise, you’ll face steep financial consequences.
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It’s not subject to tax until you withdraw it. You have complete control over how much you take out each year. There are many types of IRAs. Some are better suited for people who want to save for college expenses. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. These earnings don’t get taxed if they withdraw funds. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don’t have to worry about paying taxes on your gains while you wait to access them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. You won’t have the hassle of making deposits each month. You could also set up direct debits to never miss a payment.
Finally, the gold investment is among the most reliable. Because it’s not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil, gold prices tend not to fluctuate. As a result, it’s often considered a good choice when protecting your savings from inflation.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
cftc.gov
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
irs.gov
How To
A rising trend in gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Owners can invest in gold bars and bullion with the gold IRA. It is tax-free and can be used by investors who aren’t concerned about stocks and bond.
An investor can use a gold IRA to manage their assets and not worry about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: David Sencil
Title: Ark Invest Reduces Coinbase Holdings by Selling Over $29 Million in Shares
Sourced From: news.bitcoin.com/ark-invest-continues-to-sell-coinbase-shares/
Published Date: Sat, 06 Jan 2024 11:00:17 +0000
