The global market selloff comes off as a buying opportunity for Ark Invest as the asset management firm took on new position in Coinbase stock
Prominent investment management firm Ark Invest, led by Cathie Wood has once again invested heavily in Coinbase shares. This bold move comes as the global market is experiencing sharp declines. The company purchased over 84,000 Coinbase shares, showing continued belief in the future of cryptocurrency-related businesses.
Ark Invest Increases Coinbase Holdings While Others Sell
On Monday, Ark Invest bought 84,514 shares of Coinbase Global Inc., spending about $13.3 million. This decision came on a day when most investors were pulling out of the market due to global financial uncertainty.
The ARK Next Generation Internet ETF (ARKW) made the largest purchase, acquiring 64,806 shares valued at around $10.2 million. The ARK Fintech Innovation ETF (ARKF) also added 19,708 Coinbase shares to its holdings, costing about $3.1 million.
Despite Coinbase shares falling 2.04% during the regular trading day to $157.28, Ark Invest saw potential. However, after-hours trading saw Coinbase bounce back, rising to $161.50.
Ark Invest was buying Coinbase, but it was also selling something else. On the same day, ARKW sold 159,496 shares of the ARK 21Shares Bitcoin ETF (ARKB), which were worth about $12.4 million.
This came as the Bitcoin fund experienced $4.69 million in net outflows, based on data from SoSoValue. This indicates that more investors withdrew funds than added to the Exchange Traded Fund (ETF).
This move may suggest that Ark is shifting from holding Bitcoin directly to investing in companies like Coinbase, which operates within the crypto industry.
With these recent purchases, Coinbase holds a major position within Ark Invest’s funds. In the ARKW fund, Coinbase shares now make up 5.92% of the total holdings, making it the fourth-largest asset in the portfolio.
In the ARKF fund, Coinbase holds an even more important role, representing 7.65% of the fund’s total value, the second-largest holding. These numbers show that Ark has strong confidence in Coinbase, even though its stock has seen ups and downs.
Global Markets Faced Major Losses
Ark Invest made these investments during widespread losses across global markets. Asian markets were hit especially hard. China’s Shanghai Composite Index fell 7.3%, while Japan’s Nikkei 225 index dropped 7.8%. This is one of the worst declines in decades.
The Dow Jones Industrial Average fell by 0.91% in the United States, and the S&P 500 dropped by 0.23%. Only the Nasdaq Composite managed to see a small gain of 0.10%.
The cryptocurrency market also suffered. Bitcoin’s price dropped to a low of around $74,300 on Monday. However, on Tuesday, it bounced back and is now trading at $79,071, up 2.61% in the last 24 hours, according to CoinMarketCap data.
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