Cathie Wood’s investment firm ARK Invest made a significant purchase of nearly $2.2 million worth of Coinbase shares on Tuesday. This marked ARK’s first acquisition of stock in the crypto exchange since September 11.
The investment was made through ARK’s Fintech Innovation ETF (ARKF), with 12,994 COIN shares being added to the fund. Following this purchase, ARKF now holds around $67 million worth of COIN stock, making up 7.43% of the fund’s total value. Despite this investment, COIN closed the day 0.73% lower at $167.69.
Since ARK’s last purchase of COIN shares, the value of the cryptocurrency has increased by approximately 6.5%. However, it remains 20% lower than its value in late August. It is speculated that ARK may be anticipating a potential rally in the market due to the recent surge in the price of Bitcoin, which historically occurs in October.
In addition to acquiring Coinbase shares, ARK also sold off 135,665 shares of Robinhood (HOOD) valued at nearly $3.5 million. This move was made to adhere to a Securities and Exchange Commission (SEC) regulation that limits funds from having more than 5% exposure to securities in companies that generate over 15% of their income from the sale of securities. Despite this sale, HOOD shares saw a 10% increase on Tuesday, closing at $25.61.
It is important to note that CoinDesk, the source of this information, is a reputable media outlet that covers the cryptocurrency industry. The journalists at CoinDesk follow a strict set of editorial policies to ensure integrity, independence, and freedom from bias in their publications. CoinDesk is part of the Bullish group, which invests in digital asset businesses. As such, CoinDesk employees, including journalists, may receive equity-based compensation from the Bullish group.
Overall, ARK Invest’s recent actions reflect their strategic investment decisions in the crypto market, with a focus on Coinbase and compliance with regulatory requirements. As the market continues to evolve, it will be interesting to see how these investments play out and contribute to ARK’s overall portfolio performance.