Coinbase executives and major shareholders have sold off their Coinbase ($COIN) stock just as it hits a new yearly peak. This move has sparked questions about its implications.
In recent times, key figures at Coinbase and major shareholders have followed the lead of Cathie Wood’s Ark Invest by selling off their Coinbase ($COIN) stock, coinciding with its reaching a new annual peak. This trend is observed not only at Coinbase but also in other crypto stocks, including Microstrategy. The surge in these stocks appears to align with expectations of a potential approval for a spot Bitcoin ETF in January 2024.
Coinbase Executives’ Stock Sales Amidst Highs and Legal Proceedings
As Coinbase’s stock ($COIN) reached a 52-week high of $178, ARK Invest and Coinbase executives made notable sales, with the latest peak hitting $185. On December 27, 2023, Chief People Officer Brock Lawrence sold 104,767 $COIN shares, while Director Ehrsam Frederick Ernest III sold 43,675 shares; on December 21, Ernest III had sold 97,836 shares. Additionally, Director Rajaram Gokul sold 1,145 shares on December 26.
This comes in the context of earlier stock sales by Coinbase executives, including CEO Brian Armstrong and Chief Legal Officer Paul Grewal, dating back to June 6, 2023. This timing coincided with a U.S. SEC lawsuit alleging that Coinbase was operating its crypto platform as an unregistered national securities exchange, broker, and clearing agency.
Ark Invest’s Significant Coinbase Stock Sales and Implications for Bitcoin Price
In the span of a week, Ark Invest executed the sale of 343,261 Coinbase shares, aligning with growing optimism regarding the U.S. Securities and Exchange Commission’s (SEC) potential approval of the Bitcoin ETF before the January 10, 2024 deadline. While anticipation of ETF approval may contribute to a further upswing in crypto stock values leading up to January 10, the recent divestment of $COIN stocks suggests a profit-taking strategy.
The question arises: Could this signal an impending minor correction in Bitcoin (BTC) prices before the anticipated rally driven by ETF approval commences? The actions of major players in both the crypto and traditional investment spaces add an intriguing layer to the unfolding dynamics of the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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