A few of the ARK exchange-traded funds run by ETF star Cathie Wood made huge purchases on Wednesday. Accordingly these funds bought nearly 750,000 shares of Coinbase Global, Inc. (NASDAQ: COIN) shares on Wednesday, as the price of these ETFs lost about 2% on Wednesday. Note that these ETFs are still up over 100% in the last year.
ARK Fintech Innovation ETF (NYSEARCA: ARKF) bought 89,589 shares of Coinbase, ARK Innovation ETF (NYSEARCA: ARKK) bought 512,535 shares, while ARK Next Generation Internet ETF (NYSEARCA: ARKW) bought 147,081 shares. At Wednesday’s closing price this would have valued this purchase at roughly $246 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKF is up 138% in the last year, ARKK is up 152%, and ARKW is up 161%.
24/7 Wall St. recently reported on Coinbase:
Coinbase will realize no cash from the direct listing. All proceeds of the offering will go instead to selling shareholders. CEO Brian Armstrong is the largest shareholder, with nearly 34 million Class A shares, with venture capital firm Andreessen Horowitz next in line with about 29.5 million shares. The company said it had approximately 430 shareholders of its class A and class B common stock.
The Coinbase initial stock offering likely will be Wednesday’s biggest market story. The attention is deserved because many shares and a lot of cash will change hands. Whether cryptocurrencies like bitcoin can ever be more than outlets for investors’ speculative urges remains to be seen, but, to some degree, that doesn’t really matter for Coinbase.
Catherine Wood, the CEO and CIO of ARK Investment Management LLC is a minority and non-voting shareholder of 24/7 Wall St., LLC, owner of 247wallst.com.
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