Ark Invest Acquires 41,032 Coinbase Shares Valued at $8.7 Million
ARK Invest, led by Cathie Wood, has strategically responded to crypto market volatility by acquiring 41,032 shares of Coinbase Global Inc (NASDAQ: COIN) for $8.7 million, marking its first purchase since October. The firm also sold 98,060 shares of its spot Bitcoin ETF (ARKB), valued at $8.6 million.
Key Developments
- Coinbase represents the sixth-largest holding in ARK's Next Generation Internet ETF (ARKW), making up 5.5% of the fund’s total value.
- ARK's policy limits any holding to a maximum of 10% of total assets to ensure diversification.
- Coinbase stock has declined approximately 38% from its peak of $343.62 in December, closing at $212.49 recently.
- The crypto market is facing challenges, with Bitcoin down 10% over two days and major cryptocurrencies like Ethereum, XRP, and Solana experiencing losses between 18% to 22%.
- Record outflows from Bitcoin ETFs amounting to $940 million have been reported, indicating investor withdrawal amid market uncertainty.
- Despite short-term declines, the crypto market remains over 50% higher compared to last year.
Yassine Elmandjra, head of Ark's digital assets division, recently announced his departure, potentially impacting future investment strategies.