Ark Invest, one of the major U.S.-based investment management firms, has acquired Coinbase’s shares. Three ETFs provided by Cathie Wood’s Ark Invest, involving Ark Innovation ETF, added shares in Coinbase’s COIN to their positions on Thursday. As per a report from Reuters, the Ark Next Generation Internet ETF, Ark Innovation ETF, and Ark Fintech Innovation ETF purchased a combined total of 341,186 shares, priced at $110 million on Thursday during the closing time of trading, with one share equal to $322.75.
Earlier, the three ARK funds collectively gathered 749,205 COIN shares, worth almost $246 million combined. Wednesday’s strengthening of Ark’s Coinbase position brings the three funds’ total stock of Coinbase shares to 1,090,391. This is just days after Coinbase debuted on the Nasdaq. Moreover, Ark Invest has provided the bullish forecast that Bitcoin’s (BTC) future total market capitalization will conveniently surpass that of gold and exceed $10 trillion.
Cathie Wood Optimistic about Bitcoin ETF’s Approval in the U.S.
Cathie Wood is quite positive regarding the prospects of regulatory approval for a Bitcoin ETF from the U.S. SEC (Securities and Exchange Commission) under the new Joe Biden administration. She has designated, in particular, President Biden’s pick for SEC chair, Gary Gensler, whose experience and opinion of cryptocurrencies and related technologies is substantial. Ark Invest’s investment in Coinbase further develops its indirect exposure to crypto.
Notwithstanding its massive purchase of Coinbase shares, Tesla stock remains the top holdings of Wood’s fund even after trading about $170 million worth of shares of the electronic car company. Ark Finds’ investments in Coinbase and Tesla expand their incidental exposure to bitcoin and other cryptocurrencies. As detailed, the American electric car company had bought $1.5 billion worth of bitcoin in February 2021, therefore increasing the cryptocurrency’s reputation amongst several institutional investors and wealth managers. Moreover, it recently revealed that it would start accepting bitcoin for Tesla cars.
Coinbase has proceeded to garner attention worldwide after its direct listing on Nasdaq on Wednesday. Even after receiving a reference price of $250 for a unit of its share, COIN started at $381 and consequently surged to $429.54 before returning to $310. The share closed proximately $328.28 on Wednesday, which marked the famous crypto trading firm’s market cap set at $85.8 billion. Regrettably, the stock collapsed further on Thursday and closed 1.7% lower, causing the exchange’s value below 43% of the $112 billion it beat in its debut.