The Crypto Queen’s Latest Investment Strategy
Cathie Wood, the proverbial oracle of ARK Invest, hasn’t flinched in the face of the SEC’s recent crypto crackdown. In an audacious move, she snatched up another $19.9 million worth of Block Inc. shares just after going all-in for $21 million on Coinbase stock. Talk about sticking to one’s guns!
Regulatory Hammer or Golden Opportunity?
This latest buying spree came directly after the SEC decided to shake things up by suing two major players in the crypto arena: Binance and Coinbase. They claim these exchanges are offering unregistered securities among a laundry list of other complaints. But instead of retreating, Wood appears to see this as a golden opportunity.
Block and Coinbase: A Tale of Two Stocks
While Coinbase’s stock took a beating—plummeting nearly 20% overnight following the SEC’s announcement—Block Inc. bounced back like a champ. ARK Invest acquired 305,573 shares of Block across multiple transactions from June 7-8, making it their fourth-largest holding at a whopping 4.81% of their portfolio.
- ARK Innovation ETF (ARKK): 240,174 shares
- ARK Next Generation Internet ETF (ARKW): 39,099 shares
- ARK Fintech Innovation ETF (ARKF): 26,300 shares
As for Coinbase, it’s almost like Wood’s in a romance with the stock. She added 419,324 shares—worth about $21.6 million—to her collection, making it ARK’s seventh-largest holding at 4.39%. It’s safe to say she’s committed!
Looking On The Bright Side
Despite the looming regulatory cloud, Wood has a surprisingly sunny viewpoint on Coinbase’s future. In her chat with Bloomberg, she noted that as Binance faces increasing scrutiny for potential fraud, it should clear the path for Coinbase to thrive. She posited, “We have Binance under increasing regulatory scrutiny for more criminal activities… therefore we have the competition for Coinbase disappearing.” That’s a slick spin if we’ve ever heard one!
The Bigger Picture: Bitcoin and Beyond
But wait, there’s more! Wood holds an unwavering belief in Bitcoin’s potential. She argues that Bitcoin is like a superhero during market chaos. Her logic? In times of regulatory uncertainty, Bitcoin stands strong as an antidote to counterparty risk in the traditional financial system. She’s been making some pretty bold predictions too—like forecasting Bitcoin will reach $1 million by 2030!
As the crypto landscape evolves, Wood firmly believes innovation is migrating away from the U.S. due to strict regulations. She warned that this will likely become a heated topic during election season. And let’s face it, if the crypto enthusiasts come out swinging, it will make for an entertaining political debate!
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