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Friday, March 24, 2023

After Bitcoin crash: Cathie Woods ARK Invest buys Coinbase shares and Grayscale Bitcoin Trust

Most recently, the price of the cryptocurrency Bitcoin has mainly known one direction: downwards. Falling crypto prices also affect the shares of the newcomer Coinbase and the Grayscale Bitcoin Trust. For ARK Invest CEO Cathie Wood, this is apparently the right time to order more shares.

Bitcoin, Ether & Co. in downward spiral
Coinbase shares and Grayscale Bitcoin Trust also burdened
• Cathie Wood buys cheap
Cathie Wood apparently wants to benefit from low entry-level prices at the moment. The ARK Invest founder, who is also known as the “best female investor in the world” , recently got hold of the DraftKings share at a bargain price after it came under pressure due to serious allegations by the short seller Hindenburg Research. Wood now seems to be applying this strategy to the recently ailing crypto market.

Crypto market in a downtrend

The most popular cryptocurrencies have been in a downward spiral for a few weeks now. Bitcoin , the largest cyber coin weighted by market capitalisation , was able to climb to an all-time high of more than 64,000 US dollars in April, but it has been mainly down since then. For example, the US electric car manufacturer Tesla recently announced that it would no longer accept payments with the coin because a considerable amount of energy was consumed when mining the cryptocurrency. The company only introduced the additional payment method a few weeks earlier. For reasons of environmental protection, this is no longer justifiable , as CEO Elon Musk said on his Twitter Profile wrote. And news from China also caused the rate of the Internet currency to collapse. The People’s Republic wants to make both the mining process and trading more difficult in order to also support its own cryptocurrency – the digital yuan , which is said to be in the starting blocks. In the past week, the crypto veteran even fell below $ 30,000 for a short time . And other digital assets such as Ether and Ripple also slumped recently.

Coinbase and Grayscale Bitcoin Trust are also suffering from falling prices

The general price decline on the crypto market is also noticeable in the share price of the Coinbase crypto exchange . In mid-April, the trading platform celebrated a successful stock market debut on the NASDAQ technology exchange and recorded an initial price of 381 US dollars, which was more than 50 percent above the reference price of 250 US dollars. At this point , Wood got into the stock. The Coinbase share is now trading at $ 246.69 (closing price on June 28, 2021). And the Grayscale Bitcoin Trust, through which investors can purchase the crypto currency in the form of a traditional security without having to buy or store it themselves, has already lost a lot of its value this year. Since the beginning of the year, the minus is 8.59 percent to 29.25 US dollars (closing price on June 28, 2021). In February, the trust was trading at a record high of $ 58.22.

ARK Invest increases stake

Now Wood has taken the opportunity and increased her stake in Coinbase shares and the Grayscale Bitcoin Trust. According to Markets Insider, the managing director of the investment company bought 214,718 shares in the crypto exchange and added them to the ARK Innovation ETF . A few days later I buy it again. The exchange-traded fund now comprises approximately 3.67 million Coinbase shares, as reported by ARK Invest. At Grayscale Bitcoin Trust, the investor added even more and ordered a total of 1,046,002 shares. This flowed into the ARK Next Generation Internet ETF , which now comprises a total of 8.6 million shares in the trust.

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Wood sticks to the bullish forecast

With this, Wood maintains its bullish forecast for the leading cryptocurrency. She only confirmed to Bloomberg last month that she believed in a Bitcoin rate of $ 500,000 in the long term, despite the recent price crashes . And even when Bitcoin reached a market capitalizsation of one trillion US dollars for the first time this year , the stock market legend was optimistic. “We are only just getting started,” said Wood at the CBOE panel. “A trillion US dollars is nothing compared to what it will end up with.”

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