In a move that’s raising eyebrows across the financial world, Cathie Wood’s ARK Invest has made a bold $2.2 million bet on Coinbase (COIN). On October 9, 2024, ARK added 12,994 COIN shares to its Fintech Innovation ETF (ARKF), marking its first Coinbase purchase since September 11.
This strategic move comes at an intriguing time. Despite COIN’s 20% dip since late August, Wood seems unfazed. In fact, the stock has climbed 6.5% since ARK’s last purchase, hinting at a potential turnaround. But what’s driving this confidence?
Industry insiders speculate that Wood might be positioning for an October Bitcoin rally – a pattern that’s become somewhat of a crypto market tradition. With Bitcoin’s price often influencing Coinbase’s stock performance, this could be a calculated play to ride the next wave of crypto enthusiasm.
The purchase brings ARK’s total Coinbase holdings in ARKF to a substantial $67 million, representing 7.43% of the fund’s value. This significant allocation underscores Wood’s continued faith in the crypto ecosystem, despite recent market turbulence.
Interestingly, ARK’s move comes alongside a notable sell-off of Robinhood (HOOD) shares. The firm offloaded 135,665 HOOD shares, worth nearly $3.5 million. This wasn’t just profit-taking – it was a strategic maneuver to comply with SEC regulations limiting fund exposure to certain securities.
As the crypto market watches these moves closely, questions abound. Is Cathie Wood privy to information signaling an imminent Bitcoin surge? Or is this simply a long-term bet on the future of digital finance?
One thing’s clear: in the high-stakes world of crypto investing, ARK Invest isn’t afraid to make bold moves. As October unfolds, all eyes will be on Bitcoin’s price action – and whether Wood’s $2.2 million gamble pays off.
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