Ark Continues To Build Into The Future Of Web3

TL:DR

• Ark Invest, the investment house led by Cathie Wood, has invested approximately $19.73 million in Coinbase stock since the start of 2023.
• The latest purchase of 162,325 shares was split across the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW).
• Coinbase stock currently represents 4.62% of ARKK, Ark Invest’s flagship fund.

Investment Firm Ark Invest Loads Up on Coinbase Stock As a seasoned investment consultant, I’m well aware of the bullish stance taken by Ark Invest and its CEO Cathie Wood on the cryptocurrency market. The latest evidence of this came last Friday, when the investment firm purchased another 162,325 shares in the crypto exchange Coinbase (COIN). The split of this $9.26 million purchase was 139,105 shares in the ARK Innovation ETF (ARKK) and 23,220 shares in the ARK Next Generation Internet ETF (ARKW).

Since the start of 2023, Ark Invest has bought a total of approximately $19.73 million worth of Coinbase stock, with the vast majority being added to ARKK, the firm’s flagship fund that seeks long-term capital growth from companies involved with or benefiting from disruptive innovation. In fact, Coinbase stock currently represents 4.62% of ARKK. Additionally, ARKW, which actively invests in internet-based products and services, and the ARKF fund, which focuses on fintech companies with long-term growth potential, have also received some of the Coinbase stock purchases made this year.

It’s worth noting that while January was a banner month for ARKK, with the fund’s shares soaring 28%, the February downturn in crypto markets appears to have taken its toll on the investment product. The price of ARKK fell to $39.17 on Friday from $44.41 at the beginning of the month. However, the overall drop in ARKK’s price was partly softened by the surge in Tesla stock holdings, which account for 10.58% of the fund and rallied over 60% in the past month.

Crypto exchanges have recently come under regulatory scrutiny, with the SEC fining Kraken $30 million for offering unregistered staking services in the U.S. Coinbase CEO Brian Armstrong has stated that the crypto exchange is prepared to go to court to defend its own staking offering, and Wood has also weighed in on the SEC’s actions. Wood commented that “decentralization wins” in response to the SEC’s actions, and that given regulatory arbitrage, US exchanges will lose to foreign exchanges, which is “not so good for US competitiveness in the crypto revolution.”

In conclusion, Ark Invest’s latest purchase of Coinbase stock demonstrates the firm’s ongoing commitment to the cryptocurrency market. While the February downturn in crypto markets has impacted ARKK’s price, the surge in Tesla stock holdings has partially cushioned the blow. Additionally, Wood’s comments on the regulatory environment for crypto exchanges highlights the challenges faced by US exchanges, but also the potential for decentralization to win out.