Ark Invest, the US-based investment management firm led by Cathie Wood, has recently increased its position in Coinbase, adding more than $8.4 million worth of shares to its portfolio on May 2. The purchase includes 129,604 shares worth over $6.4 million in its Ark Innovation exchange-traded fund, 23,456 shares in its Ark Next Generation Internet ETF, and 15,809 shares in its Fintech Innovation ETF, worth over $1.1 million and $790,000, respectively. The details of the purchases were made available through an emailed trade announcement on May 3.
Despite the recent decline in Coinbase shares, which are currently trading at just over $50 per share, Ark Invest remains bullish on the cryptocurrency exchange's future. This move comes after the firm's purchase of roughly $8.6 million in Coinbase stock late last month, on the same day the company announced that it was suing the US Securities and Exchange Commission.
Coinbase's shares have gained nearly 50% this year, but they are down more than 6.5% on the day of the announcement. However, Ark Invest has long been known for its acquisition of Coinbase stock and is confident in the platform's future prospects.
In addition to their Coinbase investments, Ark Invest is also teaming up with 21Shares in a bid to get a spot bitcoin ETF approved, something that the crypto industry has been clamoring for over the years. Despite the previous two failed applications to get SEC approval, the partnership aims to secure the coveted spot bitcoin ETF.
The move by Ark Invest underscores the growing interest in cryptocurrency by institutional investors, which has helped to legitimize digital assets and has spurred their wider adoption. The firm's investment in Coinbase, which is the largest US cryptocurrency exchange, is expected to pay off as the platform continues to grow and expand its reach in the crypto market.
In conclusion, Ark Invest's increased investment in Coinbase is a testament to the growing interest in cryptocurrency by institutional investors. Despite the recent dip in Coinbase shares, the firm remains bullish on the cryptocurrency exchange's future, underscoring the platform's potential for growth and expansion. With the continued adoption of digital assets, it is expected that more institutional investors will follow suit and invest in cryptocurrency, further legitimizing this emerging asset class.