In a bullish signal for both Coinbase and the overall crypto industry, ARK Invest has purchased a total of 96,251 shares of Coinbase worth over $22.7 million.
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ARK added 66,894 shares worth over $15.8 million for the ARKK ETF and 29,357 shares worth nearly $7 million to its ARKF ETF. The company also added massive quantities of Robinhood shares to these ETFs, with 342,757 shares worth almost $14 million added to ARKK and 61,263 shares worth almost $2.5 million to ARKF.
The purchases by ARK likely represent an attempt to capitalize on low prices after the recent slump in crypto markets partially due to Evergrande's debt crisis in China. The addition of these shares also shows a continued belief in the crypto market for the time being, even after it has shown some signs of weakening.
Cathie Wood and ARK Invest have continuously doubled down on their belief that cryptocurrency and its various industry participants are the future. Just last week Cathie Wood gave a potential valuation for Bitcoin at over $500,000 during the Salt Conference in New York and said that her team believes the asset will be ten-fold where it is today.
"If we're right and companies continue to diversify their cash into something like Bitcoin and institutional investors start allocating 5% of their funds towards Bitcoin, we believe that the price will be ten-fold where it is today," said Wood.