After a nearly month-long hiatus, Cathie Wood’s ARK reported on Friday that it had bought 162,325 shares of Coinbase (COIN) for its exchange-traded funds.
ARK’s most recent COIN buy was a $3.3 million investment in the middle of January. The $9.2 million purchase coincides with heightened scrutiny of the virtual currency business by U.S. regulators. Although the SEC did not target Coinbase’s staking program as it did with Kraken, it is unclear whether or not it would target Coinbase in a future enforcement blitz.
The Binance USD (BUSD) cryptocurrency issued by Paxos has reportedly become the newest target of the SEC’s enforcement operation, according to an article in the Wall Street Journal published on Monday morning.
Cathie Wood’s ARK Increases Investment In Coinbase
There has been a 28% increase in the ARK Innovation ETF (ARKK) and a 25% increase in the ARK Fintech Innovation ETF (ARKF) so far this year.
As the U.S. Securities and Exchange Commission (SEC) pushes down on cryptocurrencies, Cathie Wood’s ARK Invest is buying up more Coinbase (COIN) shares. The price of Coinbase stock dropped to $31.55 a year ago. However, since then, COIN has recovered well, and at the time of writing, was trading at $56.40, a gain of almost 75%.
The SEC has recently taken a number of enforcement measures, including the closure of Kraken’s customer staking program, thus this purchase comes as something of a surprise.
Cathie Wood is an especially optimistic Bitcoin advocate. In an interview with CNBC at the beginning of the month, Wood reaffirmed her optimism over the future value of the king cryptocurrency, saying that she still expects it to rise by even more than 2,000% in that time frame.
In fact, our baseline projection for the year 2030 is somewhat higher than $500,000. And in the case of our bull, substantially so. Since 2008–2009, when Bitcoin first appeared, and especially after the crypto fallout this past year, when many companies went bankrupt, I believe that the concept of transparency and decentralization is gaining traction and that Bitcoin and Ethereum are the top two expressions of that in the crypto world.