Cathie Wood, the savvy investor and leader of ARK Invest, maintains her positive outlook on the cryptocurrency market and centralized exchanges (CEX) despite recent market challenges and the ongoing crypto crisis.
Wood’s investment firm ARK Invest is continuing to increase its holdings in the major U.S. cryptocurrency exchange, Coinbase.
On January 5, ARK acquired 144,463 shares of Coinbase (COIN) for its financial technology-focused fund, ARK Fintech Innovation ETF (ARKF), based on a trade record viewed by Cointelegraph. The purchase was valued at $4.8 million at the time, with COIN closing at $33.5 on Thursday.
Also on the same day, ARK purchased 27,813 COIN shares ($900,000) for its internet technology-focused fund, ARK Next Generation Internet ETF (ARKW). Together, the funds have now invested a total of $5.7 million in Coinbase stock.
Established in 2019, ARKF focuses on investing in companies that are revolutionizing financial services and economic transactions through technology platforms. Coinbase is a significant holding in the fund, representing 7.7% of its total assets.
ARKW concentrates on companies related to the future of the internet, aligning with ARK’s investment strategy. ARKW, which has been operational since 2014, has Grayscale Bitcoin Trust and Coinbase as part of its top 10 holdings, making up 5.4% and 4.8% of its assets, respectively.
Data from TradingView reveals that both funds have seen a decline of over 50% in their value over the past year, consistent with the current crypto market downturn.
Despite the funds’ decline of around 50%, Coinbase’s stock has dropped by approximately 87% since last year. ARK’s recent purchases of COIN shares indicate its confidence in the market, as the company has actively been buying during market dips. In November 2022, during the turmoil following the FTX collapse, ARK invested $12.1 million in Coinbase shares. By late November, ARK’s total ownership of COIN almost reached record levels, totaling 8.7 million shares.
Image Source: Sergei Elagin / Shutterstock
