In brief
- Ark Invest added $12 million in shares of Robinhood and $4 million worth of Coinbase on Tuesday.
- The dip buy came ahead of a strong rebound on Wednesday morning which has seen the pair jump 9% and 13%, respectively.
- The two financial firms make up the 10th and 11th largest positions for Wood’s actively managed ETFs.
Ark Invest, the investment firm of noted tech investor Cathie Wood, added $4 million worth of shares in American crypto exchange Coinbase (COIN) and $12 million of financial trading app Robinhood (HOOD) on Tuesday, buying the dip as markets slid due to war uncertainty in Iran.
Now, though, shares of both are rebounding, jumping around 13% and 9% respectively since the opening bell amid rising cryptocurrency prices. The stocks are still down about 33% and 19% respectively in the last six months.
Nevertheless, the purchases extend Ark’s sizable positions in the firms, which are the 10th and 11th largest holdings among its ETF portfolio, according to data from Cathie’s Ark, an analytics site that aggregates the firm’s ETF data.
Prior to Wednesday’s opening, the firm held around $343 million worth of shares in COIN and $340 million in HOOD.
With Tuesday’s COIN addition, the firm clawed back some of the shares it sold in early February as Bitcoin extended its slide towards $60,000. At that time, it dumped more than $19 million worth of Coinbase shares in its actively managed ETF suite.
Now, though, Bitcoin is trending back up, jumping more than 8% in the last 24 hours to recently change hands at $72,100—still neaerly 43% off its October all-time high of $126,080.
The swing has influenced predictors on Myriad Markets—a platform operated by Decrypt’s parent company, Dastan—flipping odds of “Bitcoin’s next stop” to favor a jump to $84,000 instead of a dump to $55,000. Predictors now give the jump around 54% odds, compared to as low as 35% earlier this week.
Wood’s firm also made a small purchase—around $2,950—for 2,500 shares of Brera Holdings (SLMT), a Solana treasury firm. Ark has been steadily adding to its Brera position since December, but Tuesday’s purchase is its smallest-ever addition, according to Cathie’s Ark.
One notable exception from Tuesday’s buying spree for Ark was stablecoin issuer Circle (CRCL), which stands as the investment firm’s sixth-largest position overall with around $370 million in total shares.
CRCL is up around 6% on Wednesday and now more than 27% in the last five trading days after the firm announced more than 70% growth in its stablecoin issuance and revenue in Q4.
The firm also stood pat on its holdings of Ethereum treasury firm BitMine Immersion Technologies, which has jumped more than 7% on Wednesday as Ethereum has risen similarly to $2,072.
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Source: https://decrypt.co/359921/cathie-wood-ark-invest-buys-dip-coinbase-robinhood
