I have been following Cathie Wood and her firm ARK Invest since I became involved in cryptocurrency a few years ago. They are among the largest operators in the space, so it is always interesting to see which way the wind is blowing there.
It just came to my attention that ARK did something last Thursday: it sold off nearly $15 million in Coinbase stock all in one go. Now, that is a huge sell-off for a company even of their size. That timing really surprised me, too, since it happened right before Coinbase was set to announce their earnings report.
Now, I've been in the crypto game long enough to know there's usually more than meets the eye with moves like this. Either Cathie had some insider info that something wasn't looking good… or maybe they were lightening their position just a little to be safe. Either way, it was definitely a bold call.
Coinbase's actual report came out pretty much middle-of-the-road. Revenues are up, though profits came in lower than expected. Not the worst news, but not really inspiring either.
I gotta admit, ARK's sale is making me second-guess things a little bit too. At one level, they probably know more about how to manage big funds than I do. At another, though, selling shares right before earnings always risks looking like you knew something others didn't.
Only time will tell if this was genius-level foresight or whether they will end up having egg all over their faces. Anyway, it just goes on to show you never really know what's around the bend with the crypto market.
Flip that coin any way!