Amid Coinbase, which trades as COIN, falling around 8% in trading on Thursday, Cathie Wood’s investment manager ARK Invest bought the most shares since the start of 2023.
On March 9, ARK bought 301,437 Coinbase shares ($17.5 million) for its ARK Innovation exchange-traded fund, known as ARKK, according to an investor notice seen by Cointelegraph. The firm has also purchased 52,525 Coinbase shares ($3 million) for its ARK Next Generation Internet ETF exchange-traded fund, dubbed ARKW.
ARK’s latest investments comprise the largest Coinbase share purchase in 2023, representing approximately 30% of all Coinbase purchases in 2023. The amount significantly exceeds ARK’s total Coinbase share purchases of around $13 million in January. Wood’s investment firm pocketed $42 million worth of Coinbase shares in February.
In addition to Coinbase, ARK has been actively buying Robinhood shares. On March 9, the company bought another 265,566 Robinhood shares ($2.5 million) for its ARKK fund. The purchase came shortly after ARK acquired similar amounts of Robinhood shares, buying 268,086 ($2.5 million) and 219,883 ($2.1 million) on March 8 and 6, respectively.
The news comes amid reports suggesting that ARK has earned more than 70% of its $310 million in fees since ARKK’s price plunged 76% from its all-time high in February 2021. In 2023, ARK earned an average of about $230,000 per day in fees as the fund’s value recovered slightly, from about $30 in early January to $37.3 in mid-March.
The new Coinbase stock purchase further reaffirms the company’s bullish sentiment towards the cryptocurrency and Bitcoin (BTC) industry. Focused on technological innovations like self-driving cars and genomics, ARK Invest founder Cathie Wood is one of the world’s biggest cryptocurrency proponents, and believes that Bitcoin will reach $1 million in the not too distant future due to its promising potential as a risk asset.
The latest bullish reversals came despite the cryptocurrency market facing another wave of panic as crypto bank Silvergate announced plans to close operations and liquidate its institution. On March 10, Bitcoin fell below $20,000 for the first time since early January.
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