One of most popular investors in world bought high and sold low
The most popular investment fund in 2020 and 2021 has sold its biggest crypto-related holding, which is the stock of one of the biggest centralized exchanges in the world: Coinbase. For whatever reason, ARK has sold the crypto-related holding at an all-time low.
Following the release of the fund’s earnings, COIN stock plunged massively and lost more than 20% of its value almost immediately. Reportedly, the fund sold its holdings at $53, which makes its loss mind-blowing, considering the cost average for ARK’s purchase at $254.
Cathie Wood of $ARKK just sold nearly 1.41 million shares of Coinbase, $COIN, at all-time lows of $53.
The average cost average that $ARKK purchased $COIN at was $254.65.
— unusual_whales (@unusual_whales) July 27, 2022
ARK took a massive 85% loss, which might be one of the biggest blows for Cathie Wood’s fund that shows that the short-term success of the company is not necessarily a guarantee of productive performance in the long term. Funds that use a less risky investment strategy like Berkshire Hathaway have already over-performed numerous Ark Investment funds.
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Unfortunately, the overall performance of ARK funds is not as good as some investors would expect, considering the fund’s heavy investments in technological stocks. Those stocks took a huge hit in 2022 after the tightening of the country’s monetary policy.
Coinbase is not feeling so good
While ARK’s performance shows nothing but pain, Coinbase and crypto-related stocks are taking a huge blow in the first and second halves of the year. COIN lost almost 60% of its value in the last three months despite being in a sharp downtrend since November.
The same story is applicable to cryptocurrency mining-related stocks that mostly follow the performance of the first cryptocurrency. The crypto market itself is currently sitting at around a 70% loss.