’s asset management firm disclosed that it purchased a fresh batch of shares on April 7.
Several crypto analysts have described the move as strategic, given that the acquisition occurred during a global market downturn that unsettled investors worldwide.
Ark Invest Buys $13.3 Million Worth of Coinbase Shares
ARK Invest purchased 84,514 Coinbase shares worth approximately $13.3 million. The shares were bought across two of Ark’s exchange-traded funds.
In a separate report, Ark Invest recently , for its Next Generation Internet ETF (ARKW). The purchase, made in February, was valued at $8.7 million,
However, the numbers have since been updated according to the company’s latest trade filing. Based on Monday’s closing price, the ARK Next Generation Internet ETF (ARKW) ultimately acquired 64,806 Coinbase shares, worth approximately $10.2 million. The ARK Fintech Innovation ETF (ARKF) added another 19,708 shares, valued at around $3.1 million.
Despite Coinbase shares closing the day with a 2.04% drop, ending at $157.28, the stock recovered in after-hours trading. The stock increased by 2.68% according to , reaching $161.50.
This move came on the same day Ark Invest sold 159,496 shares of its ARK 21Shares Bitcoin ETF (ARKB), worth about $12.4 million. According to , the ARKB spot Bitcoin fund experienced net outflows of $4.69 million on April 7.
Coinbase now represents a large portion of Ark’s portfolios. It holds a 5.92% weight in the ARKW fund, making it the fourth-largest asset. Coinbase is the second-largest holding, weighing 7.65% in the ARKF fund.
Global Market and Crypto See Sharp Sell-Off
It is worth mentioning that the asset management company’s purchase of Coinbase Shares on Monday took place during one of the toughest trading days in recent times. Both the US and Asian markets were hit especially hard.
For context, the Shanghai Composite Index fell by 7.3%, and Japan’s Nikkei 225 dropped by 7.8%. Analysts have considered this selloff one of their worst performances in decades.
The Dow Jones Industrial Average fell by 0.91% in the United States, and the S&P 500 slipped by 0.23%. However, the Nasdaq Composite managed to see an increment of 0.10%
The digital asset industry was also affected. at one point on Monday. However, it has rebounded and was trading at $80,246 at the time of writing, up 3.64% in the past 24 hours.
Ark Invest’s decision to buy Coinbase shares on a day of heavy market declines is a vote of confidence in the exchange. The purchase timing also shows a strategy of buying with a discount at play with hopes of a massive breakout.
