Ark Invest Sells Over $29 Million in Coinbase Shares Amid Portfolio Rebalancing

Ark Invest Continues to Reduce Coinbase Holdings

In a strategic move, Ark Invest has sold over $29 million worth of COIN shares from its ETFs, reducing its stake in Coinbase. This decision aligns with Ark's target weighting policy and follows Coinbase's strong performance in the last quarter of 2023.

Sales Details

On Jan. 3, Ark sold a total of 166,183 COIN shares from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) for a value of $25.3 million. The following day, Jan. 4, Ark sold a further 26,743 COIN shares valued at $4.16 million.

Target-Weighted ETFs

Ark Invest's ETFs are structured to maintain a target weighting where no individual holding exceeds 10% of the fund's total value. With COIN's price more than doubling in Q4 of 2023, it has surpassed the 10% target in both ARKK and ARKW, leading to these sales. In fact, Ark had already sold $33 million worth of COIN shares on Dec. 5 and $42 million on Dec. 13.

Spot Bitcoin ETF Announcement

These recent sales come as the U.S. Securities and Exchange Commission (SEC) is expected to make an announcement regarding spot bitcoin ETFs. The SEC is currently reviewing 13 proposed spot bitcoin ETFs, with the first deadline set for Jan. 10. Coinbase has plans to introduce spot Bitcoin and Ethereum products for international clients and later expand to retail investors.

Other Crypto Moves by Ark Invest

Ark Invest has also made changes in other crypto-related areas. In late December, it sold its remaining holdings in the Grayscale Bitcoin Trust (GBTC) worth $200 million. About half of these funds were reallocated into the Bitcoin Futures ETF Bito.

What are your thoughts on Coinbase's performance if a spot bitcoin ETF is approved? Share your opinions in the comments section below.

Frequently Asked Questions

What precious metals do you have that you can invest in for your retirement?

The first step to retirement planning is understanding what you have saved now and where you are saving money. You can start by making a list of all your assets. This includes stocks, bonds and mutual funds, as well as certificates of deposit (CDs), life policies, annuities and 401(k), plans, real estate investments and other assets, such precious metals. Add all these items together to calculate how much money you have for investment.

If you haven’t already done so, you may want to consider opening a Roth IRA account if you’re younger than 59 1/2 years old. Traditional IRAs allow you to deduct contributions out of your taxable income. Roth IRAs don’t. However, you won’t be able to take tax deductions for future earnings.

You may need additional money if you decide you want more. Begin with a regular brokerage.

Do You Need to Open a Precious Metal IRA

The answer depends on whether you have an investment goal and how much risk tolerance you are willing to take.

You should start an account if you intend to retire with the money.

Precious metals will appreciate over time. You also get diversification benefits.

Furthermore, the prices of gold and silver tend to move together. They are therefore a better option for investing in both assets.

Do not invest in precious metals IRAs if your goal is to save money or take on any risk.

Does a gold IRA make money?

Yes, it is possible. But not as many as you might think. It depends on how much you’re willing to risk. It’s possible to retire with $1 million if your retirement age is reached if you are able to put aside $10,000 per year for 20 consecutive years. If you try to put all your eggs into one basket, you will lose everything.

Diversifying your investments is essential. Inflation is a problem for gold. You want to invest in an investment asset that rises with inflation. Stocks are able to do this because they rise as companies make more profit. This is also true of bonds. They pay interest each year. So they’re great during times of economic growth.

But what happens when there isn’t any inflation? In times of deflation, stocks are more valuable than bonds. This is why investors should not invest all of their savings in one investment, such a bond mutual fund or stock mutual fund.

Instead, they should diversify their investments by investing in different types of funds. They could also invest in bonds and stocks. They could also invest in cash or bonds.

This gives them exposure to both sides. Both deflation and inflation. And they will still see a return over time.

Are gold IRAs a good option for investment?

You should buy shares in companies that produce gold. This is a good way to make money when you invest in gold and other precious metals like silver.

But, owning shares in direct form has two downsides:

First, you can lose money by holding onto your stock for too long. Stocks that fall are less than their underlying asset (like silver) and can end up losing more money. You could lose your money, rather than make it.

Second, waiting until the market recovers before selling can result in missing potential profits. Be patient and wait for the market’s recovery before you make any profits from your gold holdings.

Physical gold can be beneficial if you prefer to keep investments separate from your finances. A gold IRA can help diversify your portfolio and protect against inflation.

You can find out more information about gold investing on our website.

Can I keep my gold IRA at work?

Investing in an online brokerage account is the best way to keep your money safe. You have all the investment options you’d get if you had a traditional broker. However, you don’t require any licenses or qualifications. You don’t have to pay any fees for investing.

Many online brokers also offer tools that can help you manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.

How much should precious metals be included in your portfolio?

Investing in physical gold is the best way to protect yourself from inflation. You can invest in precious metals to buy into their future value, and not just the current price. You can expect your investment to increase in value with the rise of metal prices.

Gains will be taxed if you keep your investments for at minimum five years. If you decide to sell your investments after that period, you will be subject to capital gains tax. Learn more about how you can buy gold coins on our website.

Statistics

The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
Silver must be 99.9% pure • (forbes.com)
You can only purchase gold bars of at least 99.5% purity. (forbes.com)
The IRS also allows American Eagle coins, even though they do not meet gold’s 99.5% purity standard. (forbes.com)

External Links

How To

How to Open a Precious Metal IRA

Precious metals remain one of the most highly-valued investment options. Precious metals have a higher return than traditional investments like bonds or stocks, which is why they are so sought-after. It is worth your time to research and plan before you invest in precious metals. This is what you need to know before you open your precious metal IRA.

There are two main types for precious metal accounts: paper gold and Silver certificates (GSCs), and physical precious Metals accounts. Each type has its advantages and disadvantages. For example, physical precious metals accounts offer diversification benefits, while GSCs are easy to access and trade. To learn more about these options, keep reading below.

Physical precious metals accounts consist of coins, bars, and bullion. Although diversification benefits are great, this option has drawbacks. For instance, the costs associated with buying, storing, and selling precious physical metals are quite expensive. It can also be difficult to transport their large sizes from one place to the next.

However, paper silver and gold certificates are relatively cheap. These certificates can also be traded online, and they are easy to access. They’re a great choice for people who don’t want precious metals. But, they’re not as well-diversified as physical counterparts. Additionally, they are backed by government agencies like U.S. Mint and could lose value if inflation rates rise.

If you open a precious metal IRA, choose the right account for your financial situation. Before doing so, consider the following factors:

Your tolerance level
Your preferred asset allocation strategy
How much time do you have to invest
You can decide whether or not to use the funds for trading purposes.
Which type of tax treatment would you prefer
Which precious metal would you like to place your money in?
How liquid is your portfolio?
Your retirement age
You’ll need somewhere to keep your precious metals
Your income level
Your current savings rates
Your future goals
Your net worth
Any special circumstances that may affect your decision
Your overall financial situation
You choose between paper and tangible assets
Your willingness to accept risks
Your ability to manage losses
Your budget constraints
Your desire to be financially independent
Your investment experience
Your familiarity with precious and rare metals
Your knowledge of precious metals
Your confidence in the economy
Your personal preferences

Once you’ve determined which type of precious metal IRA best suits your needs, you can proceed to open an account with a reputable dealer. These companies are often found by word of mouth referrals or online research.

Once your precious metal IRA has been opened, you’ll need decide how much money you wish to invest. You should note that every precious metal IRA account has a different minimum deposit amount. Some accounts require $100 while others allow you to invest up $50,000.

The amount you invest in your precious-metal IRA is entirely up to you, as stated above. If you’re looking to build wealth over a long period, you should probably opt for a larger initial deposit. However, a smaller initial deposit might work for you if your goal is to invest less money each month.

As far as the actual precious metals used in your IRA go, you can purchase any number of different types of investments. Here are some of the most common:

Bullion bars, coins, and rounds in gold
Silver – Rounds, and coins
Platinum – Coins
Palladium-Bar and Round Forms
Mercury – Round or bar forms

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By: David Sencil
Title: Ark Invest Sells Over $29 Million in Coinbase Shares Amid Portfolio Rebalancing
Sourced From: news.bitcoin.com/ark-invest-continues-to-sell-coinbase-shares/
Published Date: Sat, 06 Jan 2024 11:00:17 +0000