Major Investment Firm Doubles Down on Crypto
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.
