Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Cathie Wood’s Ark Invest acquired 53,708 shares of Coinbase, valued at around $8.4 million, during a turbulent crypto market following the U.S. presidential debate on Tuesday.
The shares were distributed among three of Ark’s exchange-traded funds (ETFs).
The investment details from Ark’s trade filing indicate that 38,475 shares, valued at $6 million, were added to its primary Innovation ETF (ARKK).
Moreover, 9,349 shares, worth $1.5 million, were bought for the Next Generation Internet ETF (ARKW), and 5,884 shares, valued at $925,000, were allocated to the Fintech Innovation ETF (ARKF).
Ark Resumes Acquiring Coinbase Shares
This recent acquisition marks Ark’s first involvement with Coinbase since early August, when it purchased $21.8 million worth of shares as the crypto market faced a significant downturn, with Bitcoin briefly falling below $55,000.
Ark Invest follows a strategy of maintaining diversification within its funds, ensuring that no single asset constitutes more than 10% of an ETF’s portfolio.
This strategy positions the firm to effectively rebalance its holdings should Coinbase’s stock value experience substantial fluctuations in relation to Ark’s other assets.
INTEL: Ark Invest has acquired $8.4 million worth of Coinbase shares following a post-debate dip
— Solid Intel
(@solidintel_x) September 12, 2024
As per Ark’s disclosures, Coinbase is now the fourth-largest holding in its ARKK ETF, with a portfolio weighting of 6.5%, amounting to approximately $355 million.
In ARKW, Coinbase ranks as the sixth-largest holding, representing 5.1% of the portfolio, valued at $67 million.
In the ARKF fund, Coinbase is the second-largest asset, with a 7.3% weighting, worth about $60 million.
Related Posts
Coinbase shares saw a 5% decline early on Wednesday, coinciding with broader market downturns linked to the presidential debate.
However, the stock slightly rebounded, closing the day with a 0.8% decrease at $157.15. Although the stock has experienced a 9% drop in 2024, it remains up by 92% over the past year.
Analysts attributed the market volatility to a “sell-the-news” reaction following the debate, where Donald Trump’s performance was perceived as unimpressive.
This event triggered a risk-off sentiment, leading to a 2.6% drop in Bitcoin’s value, although it later recovered.
Barclays Analyst Upgrades Coinbase
Last week, British banking giant Barclays upgraded Coinbase to equal weight from underweight, citing its evolved and matured business models as significant factors in the positive revisions.
The bank noted that Coinbase could benefit from a more favorable regulatory environment, as both presidential candidates have adopted an increasingly supportive stance towards the digital asset sector.
“While we continue to see risks for Coinbase, we think the improving environment, P&L profile, gradual but ongoing diversification, clear industry leadership in the US, and recent share performance point to a more balanced risk/reward, and we move to Equal Weight,” the analyst stated.
As reported, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, raising its price target for Coinbase to $217 from $110.
In addition to Bank of America, investment banking firm KBW has also increased its Coinbase price target.
In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.
The post Ark Invest Acquires 53,708 Coinbase Shares Worth $8.4M Amid Market Dip appeared first on Cryptonews.
