Ark Invest Sells Over $29 Million in Coinbase Shares Amid Portfolio Rebalancing
Ark Invest, led by CEO Cathie Wood, has recently sold over $29 million worth of Coinbase (Nasdaq: COIN) shares as part of its portfolio rebalancing strategy. Despite the sale, Coinbase remains a significant asset in Ark's portfolio.
Sale Details
On January 3, Ark sold a total of 166,183 COIN shares from its Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) for $25.3 million. The following day, January 4, an additional 26,743 COIN shares were sold for $4.16 million.
These sales are not unusual for Ark Invest. The company's ETFs are structured to maintain target weights, ensuring that no single holding exceeds 10% of the fund's total value. With Coinbase's strong performance in the last quarter of 2023, its value surpassed the 10% target in both ARKK and ARKW, prompting Ark to sell its shares. In fact, Ark had been offloading COIN shares throughout December, including $33 million worth on December 5 and $42 million on December 13.
Impending SEC Announcement
These recent sales coincide with the upcoming announcement by the U.S. Securities and Exchange Commission (SEC) regarding spot bitcoin ETFs. The SEC is currently 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, on the other hand, has announced its plans to introduce spot Bitcoin and Ethereum products to international clients and expand these offerings to retail investors in the near future.
Ark Invest's Other Crypto Moves
In addition to selling Coinbase shares, Ark Invest has also made other strategic moves in the crypto space. In late December, the company liquidated its remaining holdings in Grayscale Bitcoin Trust (GBTC), amounting to $200 million. Furthermore, approximately half of these funds were reallocated to Bitcoin Futures ETF Bito.
The Future of Coinbase
The approval of a spot bitcoin ETF could potentially impact Coinbase's future performance. If granted, it may open up new opportunities for the crypto exchange. What are your thoughts and opinions on this subject? Share them in the comments section below.
Frequently Asked Questions
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw 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. The earnings earned after they withdraw the funds aren't subject to any tax. This type account may make sense if it is your intention to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
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. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one of the safest investment choices available today. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
What is the benefit of a gold IRA?
The benefits of a gold IRA are many. It's an investment vehicle that allows you to diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This makes for an easy transition if you decide to retire early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.
But there are downsides. The volatility of gold has been a hallmark of its history. It's important to understand the reasons you're considering investing in gold. Are you seeking safety or growth? Is it for insurance purposes or a long-term strategy? Only by knowing the answer, you will be able to make an informed choice.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. But, those funds will not allow you to buy anything.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It's sometimes called “the world's oldest money”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. This makes it highly valuable as it is hard and rare to produce.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The value of gold rises as a consequence.
On the flip side, people save cash for emergencies and don't spend it. This means that more gold is produced, which reduces its value.
This is why investing in gold makes sense for individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.
Which precious metal is best to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. Gold may not be right for you if you want quick profits. If you have the patience to wait, then you might consider investing in silver.
Gold is the best investment if you aren't looking to get rich quick. If you want to invest in long-term, steady returns, silver is a better choice.
How much are gold IRA fees?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees range between 0% and 1 percent. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
What does a gold IRA look like?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase gold bullion coins in physical form at any moment. You don't have a retirement date to invest in gold.
An IRA allows you to keep your gold forever. You won't have to pay taxes on your gold investments when you die.
Your heirs will inherit your gold, and not 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 IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit is $1,000. However, you'll receive a higher interest rate if you put in more.
Taxes will apply to gold that you take out of an IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are some exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
Avoid taking out more that 50% of your total IRA assets each year. If you do, you could face severe financial consequences.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
cftc.gov
bbb.org
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Savings should be done consistently and regularly over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: David Sencil
Title: Ark Invest Continues to Sell Coinbase Shares
Sourced From: news.bitcoin.com/ark-invest-continues-to-sell-coinbase-shares/
Published Date: Sat, 06 Jan 2024 11:00:17 +0000
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