ARK Innovation ETF (ARKK) - Get Report shares edged higher Thursday as star fund manager Cathie Wood added nearly $250 million in Coinbase (COIN) - Get Report shares to her flagship funds while trimming some holdings of Tesla (TSLA) - Get Report.
The ARK Innovation ETF, which has around $22 billion in assets under management, sold around $178 million in Tesla shares, its website indicated, while adding $168 million in Coinbase. The rest of its holdings in the world's biggest cyrptocurrency trading platform, which debuted on the Nasdaq Wednesday, were added to Wood's tech innovation and next generation funds.
Wood, one of last year's standout fund managers and the head of the $60 billion stable of funds, has been a long-time proponent of both Tesla and Bitcoin, two of her fund's key assets, and only recently claimed the clean-energy carmaker's shares could rise to $3,000 each by the year 2025.
ARK Innovation ETF shares were marked 2% higher in early trading Thursday to change hands at $127.30 each, a move that would trim its two-month decline to around 18%.
Coinbase shares, which opened at $381 each yesterday afternoon before surging to $429.54 and settling at $328.28 each in a gripping debut on the Nasdaq, were marked 3.3% higher in early trading Thursday at $337.45 each.
Tesla shares edged 0.6% higher to $736.56 each, while Bitcoin, another key holding in the ARK portfolio, was marked 2% higher at just over $62,162.00 each.
Tesla's purchase of $1.5 billion worth of bitcoin, unveiled last month, must be held as a so-called 'intangible' asset on its corporate balance sheet.
That means that, like the value of "goodwill", it can't be increased. However, it can be marked down when bitcoin prices decline, leaving Tesla's stock price at least partly-linked to bitcoin fluctuations.