Ark Investment Management, the investment firm run by Cathie Wood, has doubled down on its Coinbase (NASDAQ:COIN) bet and woill be buying more COIN shares as competitors Binance and FTX prepare to join forces.
Ark Invest Backs Coinbase
The three funds under Cathie Wood’s Ark Invest announced that it would be snapping up say 420,949 COIN shares, which would equate to $21.4 million, given current market prices.
According to the disclosed data, ARKK, the company’s flagship exchange-traded fund (ETF) purchased 330,461 COIN, Ark Next Generation Internet ETF (ARKW) – 54,466 COIN, and ARK Fintech Innovation ETF (ARKF) – 36,022 COIN.
The recent purchase comes just two weeks after Ark Invest snapped up 10,880 COIN to take its total holding to 7.7 million. The new purchase now makes it the second largest Coinbase shareholder, with over 8.8 million COIN.
Competitors, FTX and Binance Team Up
The announcement from ARK invest comes after Binance revealed it has signed an agreement to buy FTX’s non-U.S. businesses – two major competitors of Coinbase, the biggest U.S.-based crypto exchange.
While Binance continues to take hold of a great portion of the crypto industry, Coinbase CEO Brian Armstrong said FTX’s liquidity crunch could not happen at Coinbase because the company doesn’t engage in “risky behaviors.”
On the Flipside
- The crypto winter has seen Coinbase shares plunge by approximately 80% since the start of the year, underperforming Bitcoin (BTC), which is down by 74%.
Why You Should Care
As Binance looks to reshape the crypto industry with its acquisition of FTX, Coinbase remains one of the only top contending crypto exchanges.
Read about Binance’s acquisition of FTX below:
Binance to Acquire FTX to Help Cover Liquidity Crunches
To understand why FTX collapsed, read:
The Untold Story of the Alameda-FTX Crisis That Nearly Brought Down the Crypto Market