Ark Invest Sold COIN Twice

Funds affiliated with Ark Invest have continued to buy Coinbase shares since November 2022, selling off their holdings again on March 21 after selling nearly 15% of their Coinbase holdings last July.

Its financial innovation fund ARK Fintech Innovation ETF (ARKF) sold 160,887 Coinbase shares worth about $13.5 million, still holding 7.17 million shares.

ARKF fell more than 60% last year

ARKF, which was down about 65% in 2022, is up 33% this year, with a single-day gain of 5%.

Coinbase was unaffected by the Ark sell-off, rising 11% in a single day and nearly 150% year-to-date, although looking at the longer time frame, the two are actually very close.

COIN vs. ARKF｜Daily Chart Bitcoin’s Big Rise Thesis

Cathie Wood discusses many of the rising arguments for Bitcoin in an interview with Bloomberg.

The host mentioned the price prediction of Bitcoin by 2030 in Ark Research’s “Big Ideas 2023”:

  • Bull market: $1.48 million

  • Typical: $680,000

  • Bear market: $250,000

The recent series of crises such as Silicon Valley Bank seem to have indirectly contributed to the rise of Bitcoin and cryptocurrency. The host was curious, if the banking crisis does not intensify in the future, or even does not occur, then what is the reason that can make Bitcoin rise to nearly 1.5 million Dollar?

Cathie Wood noted that she is conservative about investing in Bitcoin in 2023 because she understands that some companies have removed Bitcoin from their cash reserves due to regulators, but Ark believes that Bitcoin will only survive this crisis. It will attract more and more institutions to enter the market.

In previous reports for institutional investors, if they really wanted to diversify their portfolios through new asset classes, I believe Bitcoin would account for between 2.5% and 6.5%. This number is not Crazy, it's similar to the amount of money institutions put into real estate in the 1970s and small stocks in the 1980s.

Not More U.S. Companies Are Buying Bitcoin

The host was puzzled by Cathie Wood’s thesis that U.S. businesses are not replacing their cash reserves with Bitcoin.

Cathie Wood takes aim at regulators.

She believes that the recent banking crisis is not about solvency. What has been overlooked is that bank interest rates have risen an unprecedented 19 times in one year. However, regulators seem to want to blame cryptocurrencies rather than rising interest rates and deposits. outflow.

She also criticized the SEC for approving a Bitcoin futures ETF but banning a spot ETF, saying such a decision makes no sense.

This article Ark Investment sells Coinbase stock, Cathie Wood explains Bitcoin’s rise argument but is questioned first appeared in Chain News ABMedia.