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ARK Invest Sells $90M in Coinbase Shares Following Analyst Upgrades

Title: ARK Invest Sells $90M in Coinbase Shares Following Analyst Upgrades

Description: In the wake of positive fourth-quarter results and analyst upgrades, ARK Invest divests from Coinbase, signaling shifting confidence in the cryptocurrency exchange.

ARK Invest offloads Coinbase shares: Initial sale details and context

ARK Invest, under Cathie Wood's leadership, significantly reduced its holdings in Coinbase Global (COIN), offloading nearly half a million shares valued at around $90 million. The divestment spanned three of ARK's funds: 397,924 COIN shares from the ARK Innovation ETF (ARKK), 45,433 shares from the ARK Next Generation Internet ETF (ARKW), and 55,792 shares from the ARK Fintech Innovation ETF (ARKF), totaling 499,149 shares sold. 

This move came in the wake of Coinbase's fourth-quarter earnings report, which not only surpassed Wall Street's expectations but also initiated a wave of analyst upgrades, highlighting the firm's robust performance amidst the volatile cryptocurrency market.

Despite ARK's position as one of the largest institutional backers of Coinbase, the sale followed the exchange's notable nearly 27% increase in share value to $180.31 last week, a direct consequence of its upbeat earnings announcement.

Market reaction and analyst perspectives

The positive momentum for Coinbase was further fueled by a series of analyst upgrades. KBW shifted its stance on COIN to 'market perform' from 'underperform', raising its price target to $160 from $93. Similarly, analysts at Wedbush, Canaccord Genuity, and JMP Securities revised their price targets upwards, signaling growing confidence in Coinbase's market position.

However, not all feedback was glowing. JPMorgan expressed concerns over the exchange's transparency regarding the impact of spot bitcoin exchange-traded funds on its business. Mizuho remained critical, maintaining an 'underperform' rating with a $60 price target. Despite these divergent views, ARK's strategic sale underscores a nuanced approach to portfolio management, reflective of the shifting dynamics within the cryptocurrency exchange landscape.

ARK also extended its sell-off strategy to Robinhood (HOOD), offloading $6.72 million worth of shares, indicating a broader realignment of its investment focus following the latest market developments.