Not long ago, Cathie Wood’s Ark Investments seized an opportunity to invest in Coinbase stock after it dropped to $150 levels amidst a slump in crypto stocks triggered by the Trump-Harris debate. The asset manager purchased a substantial 53,708 COIN shares, valued at over $8 million on September 11. The purchase was executed through three different Ark ETFs, with ARK Innovation ETF (ARKK) acquiring 38,475 COIN shares while ARK Next Generation Internet ETF (ARKW) and Ark Fintech Innovation ETF (ARKF) purchased 9,349 and 5,884 COIN shares respectively.
Cathie Wood had been a significant holder of Coinbase stock since its IPO, but began selling off some of its holdings around $250 levels after a significant surge in 2023. With COIN stock undergoing a major retracement of over 40% from its July peak of $265, Ark Invest took advantage of the recent dip to $150 by exploring fresh investment opportunities. Despite closing at $157.15 following the drop, there was selling pressure on COIN stock last week due to the ongoing Coinbase vs SEC lawsuit.
Barclays recently upgraded COIN stock from underweight to equal weight, citing the potential benefits Coinbase could accrue from a supportive regulatory environment. The approval of several spot crypto exchange-traded funds (ETFs) was highlighted as a factor that could enhance the company’s future prospects. Moreover, Coinbase resumed trading of Polygon POL token post its migration from MATIC, further expanding its offerings.
Coinbase’s Chief Legal Officer, Paul Grewal criticized the FDIC for withholding crucial communications related to a case. Grewal expressed concerns that the FDIC’s reluctance to disclose these communications stemmed from their fear of revealing details about pressuring banks to sever ties with crypto entities, painting a picture of opaqueness within the agency.
The recent investment move by Cathie Wood’s Ark Investments in Coinbase stock amidst market fluctuations was detailed in a post on CoinGape, indicating the dynamic nature of investment decisions in response to changing market conditions.