Cathie Wood led Ark Investment Fund bought an additional 341,186 COINBASE shares estimated to be worth $110 million, a day after purchasing nearly $250 million worth of shares yesterday. The investment fund had added 1.76% $COIN exposure to its flagship Ark Innovation ETF (ARKK.P), it’s Next Generation Internet ETF (ARKW.P), and Fintech Innovation ETF (ARKF.P), and the newly bought shares would be distributed among these three ETFs themselves.
Ark Invest had reportedly cut its exposure in Tesla as well as NYSE to buy Coinbase shares as many believe the current $COIN share price of $328 is quite less than the actual value. Coinbase made its debut on Nasdaq with an $89 billion valuation which is among the highest for a company making its debut, but the crypto proponents had predicted a pre-market valuation of well over $100 billion as its Premarket share price reached $600 on FTX a day before its public debut.
Coinbase debut valuation is not even one-third of its annualized revenue when we take into consideration its first-quarter performance as its profit soared over $800 million.
What Does Ark Invest’s $COIN Share Purchase Indicate?
Ark invest led by Cathie Wood who is also quite popular in the crypto-verse for her pro-Bitcoin stance has led the investment from the front which also recorded its highest single-day inflow last month. Wood’s addition of $COIN shares to some of the company’s top ETF products suggests that the investment firm is quite bullish on Coinbase.
Many also believe Wood’s interest in the cryptocurrency space is one of the key reasons behind Coinbase investment. The fact that over the past 3-4 months cryptocurrency space has changed the public perception from being a speculative asset class to a viable investment vehicle is also being seen as a key reason behind Ark Invest’s Coinbase Share purchases.
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