Coinbase Investment- Ark Invest Buys $13M in Coinbase as Crypto Market Declines
Coinbase Investment– Amid a turbulent global market, Cathie Wood’s Ark Invest made a significant move by purchasing 84,514 shares of Coinbase Global Inc. worth about $13.3 million. This purchase occurred across two of Ark’s exchange-traded funds (ETFs)—ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF)—as part of its ongoing strategy. According to Ark Invest’s recent filing, ARKW bought 64,806 Coinbase shares valued at $10.2 million, while ARKF acquired 19,708 shares worth roughly $3.1 million.
Coinbase has become a noteworthy component of Ark Invest’s portfolio, with the stock representing a 5.92% weight in the ARKW fund, making it the fourth-largest holding. In the ARKF fund, Coinbase shares make up 7.65%, ranking as the second-largest holding. This strategic investment decision comes during a period of heightened market volatility, as global stock markets, including Asian and U.S. equities, faced significant declines.
Coinbase’s Performance Amidst Market Volatility
Despite the challenging market conditions, where the S&P 500 and Dow Jones saw declines, Coinbase’s stock experienced a notable rebound. It closed at $157.28, down 2.04%, but after-hours trading saw an uptick of 2.68%, bringing it to $161.5. The rise in after-hours trading suggests some market optimism despite broader negative trends.
In addition to purchasing Coinbase shares, ARKW sold 159,496 shares of the ARK 21Shares Bitcoin ETF (ARKB), worth $12.4 million. The ARKB Bitcoin fund experienced net outflows of $4.69 million, underscoring some shifts in investor sentiment within the crypto space. The decision to buy Coinbase while pulling back on Bitcoin ETF positions highlights Ark’s evolving strategy amid volatile markets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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