Ark Invest, led by Cathie Wood, purchased 53,708 Coinbase (COIN) shares worth $8.4 million across three exchange-traded funds (ETFs) on Wednesday.
Ark Invest Buys $8.4 Million Worth of Coinbase Stock Amid Market Downturn
The purchase comes amid a broad crypto market decline following the US presidential debate between Donald Trump and Kamala Harris on Tuesday night.
According to Ark's latest trading filing, the company acquired:
38,475 shares ($6 million) for Innovation ETF (ARKK)
9,349 shares ($1.5 million) for the Next Generation Internet ETF (ARKW), and
5,884 shares ($925,000) for the Fintech Innovation ETF (ARKF).
This marks Ark’s first Coinbase stock purchase since purchasing $21.8 million worth of COIN in early August, during the crypto market’s lowest period when Bitcoin briefly dropped below $55,000.
Ark follows a strategy of diversifying by keeping individual holdings under 10% of ETF portfolios. Currently, COIN represents the fourth-largest holding in Ark’s ARKK ETF with a 6.5% weighting worth approximately $355 million.
In the ARKW fund, COIN is the sixth-largest holding at 5.1%, worth $67 million. In the ARKF fund, COIN is the second-largest holding at 7.3%, worth $60 million.
Wednesday’s Coinbase buy came as the stock fell 5% before closing down 0.8% on the day at $157.15. The decline followed the U.S. presidential debate, which analysts called a “sell news” event and triggered risk-off sentiment in the crypto market.
Analysts at Bitfinex suggested that Donald Trump’s poor performance compared to Kamala Harris had an impact on market sentiment as a Trump victory was seen as positive for crypto.
*This is not investment advice.