Cathie Wood’s investment firm ARK Invest has made a notable move by purchasing approximately $2.2 million worth of Coinbase (COIN) stock.
Cathie Wood's ARK Invest Buys $2.2 Million Worth of Coinbase Stock
This purchase marks ARK’s first purchase of COIN shares since September 11 and highlights renewed confidence in the crypto exchange’s future prospects.
ARK added 12,994 COIN shares to its Fintech Innovation ETF (ARKF) on Tuesday. Although COIN closed down 0.73% on the day at $167.69, the ETF now holds approximately $67 million worth of Coinbase shares, accounting for 7.43% of the fund’s total value.
Coinbase shares have risen about 6.5% since ARK’s last purchase but remain 20% lower since late August. The investment could be a strategic play that anticipates a potential rally fueled by a surge in Bitcoin (BTC) prices that has historically occurred in October.
Contrary to the Coinbase purchase, ARK sold 135,665 shares of Robinhood (HOOD) worth approximately $3.5 million.
The sale was likely in compliance with a Securities and Exchange Commission (SEC) regulation that limits funds from having more than 5% exposure to companies that derive more than 15% of their revenue from the sale of securities.
Robinhood shares rose nearly 10% on Tuesday to close at $25.61.
Cathie Wood’s ARK Invest continues to fine-tune its portfolio, reflecting strategic shifts as it navigates the evolving landscape of the crypto and fintech sectors.
*This is not investment advice.
