Cathie Wood’s Ark Funds buy £178M worth of Coinbase Stock upon launch
- Ark Investment Management purchased 749,205 Coinbase Shares at £235.05 per unit.
- Coinbase’s stock opened trading at £276.38, rose as high as £311.59 before plunging to £235.05.
- While all three Ark Funds purchased Coinbase’s stock, Ark Next Generation sold 57,043 TSLA.
Cathie Wood, a renowned Bitcoin (BTC) enthusiast, has once again displayed her belief in the future of crypto after three funds at Ark Investment Management bought Coinbase shares after the company went public. A report unveiled this news on April 15, noting that Ark Innovation ETF, Ark FinTech Innovation ETF, and Ark Next Generation Internet ETF purchased a total of 749,205 Coinbase shares after debuting trading on Nasdaq. Reportedly, the closing price of the shares was £235.05. Using this price as the average, Ark Investment Management’s purchased shares worth £178.41 million.
According to the report, Coinbase’s stock opened trading at £276.38 and soared as high as £311.59. In so doing, it sent the crypto exchange’s valuation above £81.25. However, BTC plunged from its recently set all-time high at £47,043.58, forcing Coinbase’s shares to plunge below the opening price. Nonetheless, the share price managed to remain above the reference price of £181.39.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
While Ark Investment Management had not hinted at buying Coinbase shares, this move is not unexpected. This is because the 7-year-old firm buys into firms that are involved with disruptive trends. Although this means that the company has a small space to tap into, it has had immense success through its ETF funds.
Control over stock markets
After showing its prowess in picking high-performance stocks, Ark Investment Management has made a name for itself in the investment space. With this achievement, the company has gained a lot of influence over stock markets. For instance, it projected that Tesla’s stock (TSLA) would surge to hit £5,070 by 2025. Following this prediction in January last year, TSLA rose from £94.22 to trade hands at £537.66 at the time of writing.
However, despite being bullish on TSLA, one of Ark Investment Management’s funds sold a sizeable portion of the stock. Reportedly, Ark Next Generation sold 57,043 TSLA yesterday. While the company believes that Tesla and electric cars will be a big thing, it believes that digital wallets and genomics will be the next two largest disruptive trends.
According to Cathie Wood, the CIO and CEO of Ark Investment Management, digital wallets and two-sided marketplaces will soon assume most of the roles that bands play today.