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Cathie Wood Reverses Course, Buys $6.9M in Coinbase Stock – Is ARK Betting on a Rebound?

Cathie Wood is again buying. ARK Invest simply picked up 41,453 shares of Coinbase inventory, price about $6.9 million.

What makes it attention-grabbing is the timing. Just weeks in the past, ARK was trimming publicity. Now they’re stepping again in as COIN tries to stabilize.

Key Takeaways

  • The Buy: ARK bought 41,453 shares price $6.9 million throughout three ETFs on Feb. 18.
  • The Split: The majority went to the flagship Innovation ETF (ARKK), which took 29,689 shares ($4.9 million).
  • The Pivot: This reverses a promoting streak from early February the place ARK offloaded $17.4 million in COIN.

Is This a Tactical Pivot?

Just a few weeks in the past, ARK was heading the opposite manner. The agency dumped about $17.4 million price of COIN on Feb. 5 and Feb. 6 whereas the broader market was sliding. At the identical time, it rotated capital into the crypto alternate Bullish.

Now the script has flipped. That contemporary $6.9 million purchase suggests ARK sees worth at these ranges. It appears to be like just like the basic purchase the dip play they’re recognized for.

For merchants watching ETF flows, this issues. ARK often caps positions round 10% of a fund. The earlier promoting and newest add probably mirror portfolio balancing, not panic. It feels extra like weight administration than a change in long run conviction.

Why ARK Just Bought $6.9M in Coinbase Stock

The accumulation was unfold throughout three key funds. The flagship ARK Innovation ETF (ARKK) led the cost with a $4.9 million allocation. The Next Generation Internet ETF (ARKW) added $1.2 million, whereas the Fintech Innovation ETF (ARKF) picked up $704,000.

This shopping for exercise occurred as COIN rebounded. Shares closed up 1% Tuesday at $166.02 and have gained 8.4% during the last 5 buying and selling days. Technically, the inventory is looking for help after falling 28% year-to-date.

Source: Ark Invest Tracker

Market observers be aware that such buying usually precedes potential rallies. Similar technical indicators are flashing elsewhere in the market, with some analysts warning of extreme funding rates that might set off squeeze situations.

According to the agency’s disclosures, COIN stays a heavyweight in the portfolio. It is the seventh-largest holding in ARKK (4% weighting) and the third-largest in ARKF (5.6% weighting).

What Does This Signal for COIN Stock?

ARK’s return to the purchase aspect suggests confidence regardless of Coinbase’s combined earnings. The firm just lately reported a $667 million net loss for This autumn, pushed largely by unrealized crypto losses.

However, analysts stay bullish. Bernstein maintained an outperform ranking with a $440 worth goal—implying over 200% upside. This optimism is partly fueled by expectations that historical capital inflows might increase retail buying and selling quantity in the approaching months.

Regulatory readability additionally looms giant. With discussions heating up in Washington, particularly relating to upcoming market structure bills, the elemental case for Coinbase might shift quickly. For now, Cathie Wood is betting that the present worth is a low cost, not a misery sign.

Discover: Here are the crypto likely to explode!

The put up Cathie Wood Reverses Course, Buys $6.9M in Coinbase Stock – Is ARK Betting on a Rebound? appeared first on Cryptonews.

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