ARK Invest, led by tech-focused investor Cathie Wood, has made a record purchase of Coinbase stock amidst a volatile market. Despite Coinbase tumbling by 8% on March 10, ARK Invest bought the largest amount of the stock since the start of the year, comprising around 30% of all Coinbase purchases in 2023. This exceeds their total Coinbase stock buys of around $13 million in January and $42 million in February.
In addition to Coinbase, ARK Invest has also been actively purchasing Robinhood stock. On March 9, the company bought 265,566 Robinhood shares for its ARKK fund, following similar purchases of 268,086 and 219,883 shares on March 8 and 6, respectively.
Despite the recent market turbulence, ARK Invest remains optimistic about the cryptocurrency industry and Bitcoin in particular. Cathie Wood is one of the biggest crypto bulls in the world, predicting that Bitcoin will reach $1 million in the not-too-distant future. She sees the cryptocurrency as a promising risk-on asset, along with other technological innovations like self-driving cars and genomics.
However, ARK Invest has not been immune to the market downturn. Reports suggest that the firm has earned more than 70% of its $310 million fees since the price of its ARKK fund plummeted by 76% from its all-time high in February 2021. Despite this setback, ARK Invest has earned an average of roughly $230,000 in fees daily in 2023, as the fund’s value has slightly recovered from around $30 in early January to $37.3 in mid-March.
The latest bullish investments by ARK Invest come amid renewed market volatility, with Bitcoin dipping below $20,000 for the first time since early January. The market has been rocked by the news that Silvergate crypto bank is planning to wind down operations and liquidate the bank.
Despite the challenges facing the cryptocurrency industry, ARK Invest remains committed to its bullish outlook. The firm sees continued growth and innovation in the sector, with Bitcoin and other cryptocurrencies playing a key role in the future of finance. With the backing of investors like Cathie Wood, the industry is sure to attract continued interest and investment in the years to come.
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