Cathie Wood’s ARK Invest, known for its aggressive investment strategies in disruptive innovation, is making waves again. On August 5th, amidst a significant market downturn that saw Bitcoin briefly dip below $50,000, ARK Invest began accumulating shares of Coinbase (COIN) and Robinhood (HOOD).
This move signals a potential buying opportunity for ARK, which had been offloading COIN shares throughout 2024. Their latest purchase totaled 93,797 shares, valued at $17.77 million. Similarly, ARK invested $11.19 million in Robinhood, acquiring 681,885 shares. This marks their first purchase of HOOD since February 13th, 2024.
The buying spree wasn’t limited to a single ARK fund. The firm’s flagship ARK Innovation ETF (ARKK) spearheaded the Coinbase acquisition with 65,165 shares, while the ARK Fintech Innovation ETF (ARKF) and ARK Next Generation Internet ETF (ARKW) also participated, adding 15,629 and 13,003 shares, respectively.
The story is similar with Robinhood. ARKK took the lead, acquiring 461,100 shares, while ARKF and ARKW added 110,402 and 110,383 shares each.
This strategic move comes on the heels of a major market sell-off on August 5th. Both COIN and HOOD experienced significant drops in their stock value. COIN fell by 7.3% to close at $189.47, while HOOD saw an 8.17% decline to $16.42. This broader market downturn wasn’t limited to traditional stocks, with Bitcoin taking a major hit as well. The world’s most popular cryptocurrency dipped below $50,000 for the first time since February 2024, reaching a low of $49,800 before partially recovering.
Also Read: SEC Stonewalls Coinbase, Denies Access To Over 3 Million Documents Related To Crypto Regulation
ARK Invest’s strategy is well-documented. The firm is known for accumulating shares during price dips with the intention of selling them later when their market value rises. However, their portfolio management follows a strict diversification rule, preventing any single investment from exceeding 10% of the total value of their ETFs. This policy likely explains the recent selling of COIN shares by ARK.
With Bitcoin currently trading at $55,092, reflecting a 6.4% increase over the last 24 hours but still down 17% over the previous week, all eyes are on ARK Invest. Will they continue to capitalize on the recent market turbulence, or will they wait for a further dip before adding more COIN and HOOD to their portfolios? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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