ARK Invest Makes Substantial Coinbase Investment in 2023

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Cathie Wood’s ARK Invest made a significant move in the cryptocurrency market on Thursday, as the investment manager purchased the largest amount of Coinbase shares since the start of 2023.

An investor notification seen by Cointelegraph showed that ARK Invest purchased 301,437 Coinbase shares ($17.5 million) for its ARK Innovation exchange-traded fund (ARKK), and 52,525 Coinbase shares ($3 million) for its ARK Next Generation Internet ETF (ARKW). The Coinbase stock acquisition makes up roughly 30% of all the cryptocurrency exchange’s purchases this year.

Moreover, ARK Invest has been actively acquiring Robinhood shares as well. On March 9, the firm purchased 265,566 Robinhood shares ($2.5 million) for its ARKK fund. The same fund was also loaded with 268,086 ($2.5 million) and 219,883 ($2.1 million) Robinhood shares on March 8 and 6, respectively.

Related: Silvergate reportedly talks with FDIC on ways to avoid shutdown

The latest Coinbase purchase further cements ARK Invest’s bullish outlook for the cryptocurrency industry and Bitcoin (BTC). Wood, the firm’s founder, is a renowned crypto enthusiast, believing that BTC has the potential to reach $1 million in the not-so-distant future.

The Coinbase stock buy comes as the crypto market experienced a dip caused by Silvergate crypto bank’s plan to wind down operations and liquidate the bank. On March 10, Bitcoin dropped below $20,000 for the first time since early January.

Since ARKK’s price peak in February 2021, the fund has dropped 76%. Despite this, the investment firm has reportedly earned over 70% of its $310 million fees since then, with an average of $230,000 in daily fees in 2023.

ARK Innovation ETF (ARKK) historical price chart. Source: TradingView