Coinbase Insiders Cash Out as COIN Prices Soar 480% YTD: Report

Coinbase insiders seem to be disposing of COIN shares this December, with the co-founder Fred Ehrsam III appearing to be the most active seller, according to data from Insider Alerts.

Several executives and top shareholders at the exchange have recently been selling company shares, with some following the trend set by Cathie Wood’s asset management firm, Ark Invest, which comes as Coinbase’s stock reaches a new yearly high.

Coinbase Insiders Sell Over $120 Million in Shares

December has seen significant insider selling activity at Coinbase, with a total volume of over $120 million, according to data from Insider Alerts. Coinbase co-founder Fred Ehrsam III led the selling, disposing of over 450,000 shares in various transactions, including the largest one for 114,142 shares at $14.9 million.

🚨BIG insider selling happening at $COIN pic.twitter.com/WDhuIxF7EC

— Insider Tracker (@TrackInsiders_) December 27, 2023

Coinbase CPO Lawrence J Brock sold 104,767 COIN shares in a single transaction for $18.3 million. At the same time, CEO Brian Armstrong was the third most active seller, offloading 146,150 shares in multiple transactions for $21.6 million.

Other Coinbase executives also participated in the selling spree, such as Coinbase CFO Alesia J. Haas, Coinbase Director Rajaram Gokul, Coinbase COO Choi Emilie, and several others, who offloaded millions of dollars worth of shares in December.

Despite COIN’s price reaching $185.2, a 480% increase year-to-date, it remains below its all-time high of $342.9 from November 2021.

ARK Invest Cashes in on Coinbase Shares

Cathie Wood’s Ark Invest sold additional tranches of Coinbase shares as the stock reached new yearly highs this month. Ark Invest offloaded 149,780 COIN shares (equivalent to $24.2 million) from two funds.

The sale breakdown includes 132,782 Coinbase shares ($21.5 million) from its Innovation ETF and 16,998 ($2.7 million) from its Next Generation Internet ETF. This move was part of Ark Invest’s ongoing strategy to rebalance its fund weightings in response to the recent surge in COIN’s price. The sale occurred when Coinbase shares reached a 52-week high at $185.

Ark Invest disposed of $5.5 million worth of Coinbase shares last Tuesday. Over the past month, the firm has sold off over $200 million worth of Coinbase stock. This move coincides with increasing confidence in the potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) before the January 10, 2024 deadline.

While the anticipation of ETF approval may lead to a further rise in crypto stock prices leading up to January 10, the recent selling of COIN stocks by Ark Invest could be interpreted as a profit-taking strategy.