ARK Invest’s Unshakeable Faith in Coinbase

In the ever-churning seas of cryptocurrency, ARK Invest has proven to be a steadfast ship, navigating through stormy waters to grab hold of Coinbase stock. Despite Silvergate Bank’s bankruptcy concerns, which sent ripples of worry through the crypto community, ARK saw an opportunity and seized it. On March 7, they scooped up 47,568 shares, bringing their total to about 6 million shares in the ARKK ETF. Talk about commitment!

Coinbase’s Roller Coaster Ride

Coinbase’s stock seems to be on its own wild ride lately. Starting from a height of $87.50 in February, it has taken a nosedive to around $61.69, a staggering drop of nearly 30% in just over a month. If stock prices had feelings, Coinbase would be having a serious identity crisis right about now.

ARK’s Buying Spree: A Strategy Unraveled

Kathie Wood and her team at ARK need a gold star for bravery. While the majority are running scared at the sight of declining stock prices, ARK is turning the other cheek and just keeps buying. Notably, they’ve expressed positive sentiment towards Coinbase’s new initiatives, especially their Ethereum layer-2 network, Base. They speculate that this move aligns with their belief in a decentralized financial future, despite initial revenue from it not being immediately realized.

The Grayscale Drama: A Side Story

While ARK confidently purchases Coinbase stocks, the spotlight is also shining on Grayscale Bitcoin Trust (GBTC), that is having its own existential moment. With a court currently deciding the fate of its conversion into an ETF, GBTC is witnessing a slight uptick in value. But here’s the kicker: it’s at a substantial discount to the Bitcoin spot price, causing analysts to raise an eyebrow. Will GBTC break free from the chains of its discount and soar? Or will it continue to drag its feet? Only time will tell.

Taking Risks in the Crypto World

Both ARK Invest and Grayscale are exemplifying that volatility can go hand-in-hand with opportunity. While ARK has come under scrutiny for holding onto a high-cost basis of $254 per share for Coinbase despite the current lower prices, their philosophy remains clear: they are playing the long game in a world that thrives on short-term pulse checks. As they juggle investments in risky environments, one thing’s for sure: they believe the best is yet to come.