Despite crypto regulatory heat, ARK's Cathie Wood continues to bet big on Bitcoin
ARK Invest's CEO, Cathie Wood, remains undeterred by recent regulatory scrutiny on crypto, acquiring another $19.9 million shares in Block Inc. and $21 million in Coinbase stock. Wood's purchasing spree occurs amidst the SEC's lawsuits against Binance and Coinbase for allegedly offering unregistered securities.
Despite Coinbase's shares dropping post-lawsuit, Block Inc.'s shares experienced a considerable increase. ARK Invest's new Block shares, amounting to 305,573 across six purchases, now constitute 4.81% of ARK's holdings. These shares have been divided among its ARK Innovation, ARK Next Generation Internet, and ARK Fintech Innovation ETFs.
ARK Invest also bought 419,324 shares of Coinbase, valued around $21.6 million, during COIN's near 20% overnight drop on June 5. Despite potential damage from the lawsuits, Wood suggests the intense scrutiny on Binance may favor Coinbase in the long term. Coinbase now forms ARK's seventh-largest holding at 4.39%. ARK has increased its COIN share count by 8.2% since Q1.
Despite being bullish on Coinbase, Wood voiced concerns over the SEC's aggressive approach impacting U.S. crypto innovation. She maintains a long-term optimistic stance on Bitcoin (BTC), asserting its resilience amidst market instability and regulatory uncertainty. In April 2022, Wood forecasted Bitcoin to reach $1 million by 2030.
