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Market Mayhem? Cathie Wood’s Ark Invest Doubles Down on Coinbase
When markets across the globe suffered a sharp decline this week, Cathie Wood’s Ark Invest was busy accumulating Coinbase shares, showing the point that volatility does not make this company a target for investors.
A $13.3M Coinbase Buy
Ark Invest added 84,514 shares of Coinbase Global Inc. (COIN) into the portfolio of its investors, totalling around $13.3 million total amount. These purchases were spread across two of Ark’s ETFs
- ARK Next Generation Internet ETF (ARKW) took in 64,806 shares for $10.2 million
- ARK Fintech Innovation ETF (ARKF) bought 19,708 shares valued at about $3.1 million
The move was made despite Coinbase shares falling 2.04 percent to $157.28 on Monday’s closing. Incredibly, COIN rebounded slightly in the hours after, gaining 2.68 percent up to $161.50 as per Google Finance.
ETF Reshuffling in Action
As Ark was busy purchasing Coinbase as well, it let go of a significant portion of its Bitcoin ETF holdings. In particular, ARKW offloaded 159,496 shares of the ARK 21Shares Bitcoin ETF (ARKB) which is the sale was worth $12.4 million. On the same day, ARKB cash-flow bitcoin funds logged $4.69 million of net outflows in the last quarter, according to the data provided by SoSoValue.
Coinbase is now holding a major position in both of these markets:
- The ARKW fund is comprised of Coinbase. ARKW, Coinbase makes up 5.92 percent of the total fundwhich is the fourth largest holding
- In ARKF it’s the second largest holding with 7.65 percent.
Chaos Across Global Markets
Ark’s biggest purchase was made amid a turbulent day for markets around the world:
- Shanghai Composite plunged 7.3%
- Nikkei 225 fell 7.8 percent. It was one of the most difficult days in decades. Asian shares.
- Within the U.S., the Dow fell 0.91 percent while the S&P 500 dropped 0.23 percent.
- It was surprising to see that the Nasdaq made a tiny increase, up 0.10 percent
BTC Crypto Swings Wild
The world of crypto wasn’t exempt from volatility, as well. Bitcoin was briefly down to $74,300 before rising to around $80,246 -up 3.64 percent over the past 24 hours, according to The Block.
The Bigger Picture
In typical Cathie Wood manner, Ark Invest is sticking to its guns and investing in high-conviction bets even when markets are shaking. While the rest world is fumbling, Ark is going full speed with its Coinbase betting strategy.
