Ark Invest, the Cathie Wood-owned asset management firm has taken a new position in Coinbase Shares, following heavy stock market selloff.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
3 mins read
Cathie Wood’s asset management firm Ark Invest disclosed that it purchased a fresh batch of Coinbase shares on April 7.
Several crypto analysts have described the move as strategic, given that the acquisition occurred during a global market downturn that unsettled investors worldwide.
ARK Invest purchased 84,514 Coinbase shares worth approximately $13.3 million. The shares were bought across two of Ark’s exchange-traded funds.
In a separate report, Ark Invest recently acquired 41,032 shares of Coinbase shares, for its Next Generation Internet ETF (ARKW). The purchase, made in February, was valued at $8.7 million,
However, the numbers have since been updated according to the company’s latest trade filing. Based on Monday’s closing price, the ARK Next Generation Internet ETF (ARKW) ultimately acquired 64,806 Coinbase shares, worth approximately $10.2 million. The ARK Fintech Innovation ETF (ARKF) added another 19,708 shares, valued at around $3.1 million.
Despite Coinbase shares closing the day with a 2.04% drop, ending at $157.28, the stock recovered in after-hours trading. The stock increased by 2.68% according to Google Finance Data, reaching $161.50.
This move came on the same day Ark Invest sold 159,496 shares of its ARK 21Shares Bitcoin ETF (ARKB), worth about $12.4 million. According to data from SoSoValue, the ARKB spot Bitcoin fund experienced net outflows of $4.69 million on April 7.
Coinbase now represents a large portion of Ark’s portfolios. It holds a 5.92% weight in the ARKW fund, making it the fourth-largest asset. Coinbase is the second-largest holding, weighing 7.65% in the ARKF fund.
It is worth mentioning that the asset management company’s purchase of Coinbase Shares on Monday took place during one of the toughest trading days in recent times. Both the US and Asian markets were hit especially hard.
For context, the Shanghai Composite Index fell by 7.3%, and Japan’s Nikkei 225 dropped by 7.8%. Analysts have considered this selloff one of their worst performances in decades.
The Dow Jones Industrial Average fell by 0.91% in the United States, and the S&P 500 slipped by 0.23%. However, the Nasdaq Composite managed to see an increment of 0.10%
The digital asset industry was also affected. Bitcoin tumbled to as low as $75,053 at one point on Monday. However, it has rebounded and was trading at $80,246 at the time of writing, up 3.64% in the past 24 hours.
Ark Invest’s decision to buy Coinbase shares on a day of heavy market declines is a vote of confidence in the exchange. The purchase timing also shows a strategy of buying with a discount at play with hopes of a massive breakout.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
