Cathie Wood’s Ark Investment Management has once again turned heads by seizing a buying opportunity in Coinbase stock (COIN) after its significant drop to $150 on Wednesday, September 11. With crypto stocks facing early trading pressure due to market reactions following the Trump-Harris debate, Ark Invest saw an opening and swiftly acted on it.
Ark Invest Acquires 53,708 COIN Shares
Ark Invest, known for its aggressive strategy in disruptive tech, added a whopping 53,708 shares of Coinbase to its portfolio, valued at over $8 million. The purchase, filed by Ark Investments, was spread across three different exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) scooped up the largest share, with 38,475 COIN shares, while the ARK Next Generation Internet ETF (ARKW) bought 9,349 shares. The ARK Fintech Innovation ETF (ARKF) rounded out the buy with 5,884 shares.
This move highlights Ark’s confidence in Coinbase’s long-term potential, despite a sharp 40% retracement from its July high of $265. Cathie Wood has been a strong advocate of Coinbase, being one of its earliest backers during its IPO. However, after the stock’s surge earlier in 2023, Ark Invest took profits at $250 levels. Now, with the stock trading significantly lower, Ark has stepped back in to capitalize on the dip.
Market Reactions and Regulatory Winds
Coinbase’s stock has been facing headwinds in recent weeks, particularly after Judge Katherine Polk Failla sided with the U.S. Securities and Exchange Commission (SEC) in an ongoing legal battle with the exchange. This legal uncertainty has kept COIN stock under pressure, but it still closed Wednesday’s trading at $157.15, up from its intra-day low of $150.
Despite these hurdles, Coinbase received a significant endorsement from Barclays last week, upgrading COIN from “underweight” to “equal weight.” Barclays cited a potentially favorable regulatory environment for digital assets as both major U.S. presidential candidates have shown supportive stances toward crypto. Additionally, Barclays suggested that the approval of spot Bitcoin exchange-traded funds (ETFs) could greatly boost Coinbase’s business.
In a strategic move, Coinbase resumed trading of Polygon’s POL token on Wednesday following Polygon’s migration from its previous MATIC token. This development showcases Coinbase’s continued commitment to supporting the latest trends and updates within the cryptocurrency ecosystem.
In parallel to these financial developments, Coinbase’s Chief Legal Officer, Paul Grewal, has taken a hard stance against the Federal Deposit Insurance Corporation (FDIC). Recently, Grewal criticized the FDIC for withholding important communications related to the agency’s pressure on banks to sever ties with crypto firms. Grewal argued that the FDIC’s reluctance to release these documents was an effort to conceal its heavy-handed approach toward the cryptocurrency sector, a topic that has sparked heated debate within regulatory circles.
A Strategic Bet by Ark Invest
Cathie Wood’s Ark Invest has always positioned itself as a believer in the long-term potential of disruptive technologies, and its latest Coinbase purchase demonstrates continued faith in the digital asset space. As crypto stocks fluctuate amid regulatory uncertainty, Ark’s sizable investment in Coinbase reflects a calculated bet that the stock, and by extension, the broader digital asset industry, has a bright future ahead—especially if regulatory tailwinds and ETF approvals come into play.
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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