Cathie Wood’s Ark Invest Buys $21 Million Worth of Coinbase Shares – What Do They Know?
Summary
Cathie Woods Ark Invest Buys $21 Million Worth of Coinbase Shares What Do They Know?Ark Investment Management, the fund led by the well-known technology investor Cathie Wood, has bought a dip.According to Barrons, Arks exchange-traded funds (ETFs) bought nearly 421,000 or 420,949, to be precise of major crypto exchange Coinbases shares, to expand its position in the exchange by more than $21 million. COIN dropped 10.8% on Tuesday and another 2.5% in US pre-market trading Wednesday.Looking at the price on Thursday morning, UTC time, it stood at $46.9. Its trading volume fell from $217 billion to $159 billion.While the latest drop in stock prices comes amid the crisis surrounding crypto exchange FTX, Coinbase said that it has no material exposure to the collapsed company, its FTT coin, or its parent company Alameda Research.As reported, crypto exchange Binance had agreed to acquire FTX on Tuesday this week, before pulling out of the deal on Wednesday, citing mishandled customer funds and regulator investigations.Meanwhile, the question poses itself: what does Ark know that the rest of us dont? Why is it buying Coinbase stocks in the midst of the current crisis and market downturn?The question is especially notable given that Ark Invest sold more than 1.41m shares of COIN in July, then worth about $75 million. Ark sold at lows of $53, suggesting that the firm may have believed that COIN could extend losses in the following days.Per Bloomberg, Ark has been buying Coinbase shares since its 2021 debut and was the third-biggest shareholder of Coinbase, holding some 8.95 million shares as of the end of June.Learn more:- How Investors Should Approach Bitcoin, According to Ark Invest- This is Whats Backing Arks Big Bitcoin, Ethereum and Web 3 Forecasts- Cathie Wood on Bitcoin- Cathie Wood on the Fed, Economy, Coinbase, Tesla