Ark Invest has acquired $18 million worth of Coinbase shares during a market downturn, signaling confidence in the cryptocurrency exchange’s long-term potential.
Points
- Ark Invest bought 93,797 Coinbase shares worth $18 million.
- The purchase spans three exchange-traded funds （ETFs）.
- This acquisition occurred amid a broad market price slump.
In a strategic move, Ark Invest, led by Cathie Wood, has purchased 93,797 shares of Coinbase, valued at $18 million, across three of its exchange-traded funds （ETFs）. This acquisition comes amidst a broader market downturn, highlighting Ark’s confidence in the long-term potential of the cryptocurrency exchange.
The breakdown of the purchase includes 65,165 shares （$12.3 million） for Ark’s Innovation ETF （ARKK）, 13,003 shares （$2.5 million） for its Next Generation Internet ETF （ARKW）, and 15,629 shares （$3 million） for its Fintech Innovation ETF （ARKF）. This marks the first time Ark has bought back Coinbase shares since acquiring $21 million worth of COIN in June 2023.
The recent market slump saw Coinbase shares fall 7.3% to $189.47 by market close on Monday, reducing its year-to-date gains to 9.5%. Despite this, the stock remains up 113% over the past year but is still 45% below its all-time high of $342.98 set in November 2021.
Ark’s investment strategy typically limits individual holdings to no more than 10% of an ETF’s portfolio, maintaining diversification. Following the latest purchase, COIN is now the third-largest holding within ARKK, with an 8.6% weighting worth $441 million, and the fourth-largest holding in ARKW at 6.7%, worth $82.5 million. In ARKF, Coinbase shares represent the largest holding at 9.7%, valued at $72 million.
This strategic acquisition underscores Ark Invest’s belief in Coinbase’s robust business model and its pivotal role in the cryptocurrency market. The purchase also reflects a broader trend of institutional investors seeking to capitalize on market volatility and buy into promising tech and crypto firms during downturns.
解説
- Strategic Investment: Highlights Ark Invest’s confidence in Coinbase’s long-term growth and market position.
- Market Volatility: Reflects the strategy of buying into strong companies during market slumps to capitalize on future growth.
- Diversification: Ensures a balanced portfolio within Ark’s ETFs, mitigating risks associated with large single holdings.
- Future Outlook: Coinbase’s strong market presence and institutional backing suggest potential for significant recovery and growth.