ARK Invest Doubles Down on Coinbase Amid Market Turmoil

A Rollercoaster Ride: ARK Invest’s Big Bet on Coinbase

On March 9, the financial world saw some serious action when ARK Invest decided to play superhero for Coinbase stocks, grabbing a whopping 301,437 shares—a delightful $17.5 million worth—for its ARK Innovation ETF, ARKK. Just to spice things up, they also snagged an additional 52,525 shares worth $3 million for their ARK Next Generation Internet ETF, or ARKW. This makes ARK’s recent moves the biggest eyesore (or treasure, you decide) in Coinbase investments so far this year, accounting for approximately 30% of all shares picked up in 2023.

Comparative Coinage: ARK’s Purchase Power

To put things into perspective, ARK’s January spending on Coinbase was about $13 million, which is like ordering a pizza and then discovering it was just a slice. In stark contrast, the company previously invested a hefty $42 million on Coinbase stocks in February alone. Talk about a fluctuating cryptocurrency buffet!

Guess Who Else is on the Menu? Robinhood!

As if that wasn’t enough, ARK has been getting chummy with Robinhood as well. Alongside the Coinbase adventure, they bought another 265,566 Robinhood shares for $2.5 million on the very same day. This followed their recent days of Robinhood splurging, with purchases of 268,086 and 219,883 shares for similar amounts just days earlier. Makes you wonder if they’re trying to corner the market on trading platforms!

Fee Frenzy: ARK’s Lucrative Year

Despite the ups and downs, ARK’s nest egg hasn’t gone dry. The firm has racked up $310 million in fees since its infamous ARKK fund took a dive of 76% since February 2021’s high point. In 2023 alone, ARK has effortlessly pulled in about $230,000 a day in fees, all while the fund’s value kicked back from $30 to $37.3 between January and March. A lesson in resilience—or simply good fortune?

Crypto Market’s Wild Card: Bitcoin’s Plunge

ARK’s bullish investments come with a side of drama, especially with a crypto market that seems to thrive on panic. Silvergate crypto bank recently announced plans to wind down its operations, causing Bitcoin to face a rude awakening, dipping below $20,000 for the first time since early January. Yet, ARK’s founder Cathie Wood remains undeterred, insisting that Bitcoin could soar to $1 million. At this rate, we might need a bigger mountaintop for all these predictions!