ARK Invest CEO Cathie Wood doesn’t appear to have been swayed by recent crypto regulatory moves, buying an additional $19.9 million in Block Inc. stock just after buying $21 million in shares. Coinbase shares.
Wood’s latest buying spree comes despite the U.S. Securities and Exchange Commission suing two of the industry’s heavyweights, Binance and Coinbase, this week for offering what the regulator considers securities unregistered, among others.
Coinbase’s stock price was depressed in the days following the SEC lawsuit, however, shares of Block Inc. surged in the same period.
ARK Invest’s 305,573 new shares of Block were purchased six times between June 7 and June 8, which is now ARK’s fourth-largest holding at 4.81%, according at ARK Invest Daily Trades.
Among the new shares, 240,174 shares were added to its ETF ARK Innovation (ARKK), 39,099 shares to ARK Next Generation Internet (ARKW) and the remaining 26,300 shares to ARK Fintech Innovation (ARKF).
As for Coinbase, ARK Invest bought 419,324 shares – worth around $21.6 million – across three purchases on June 6, which came amid a nearly 20% drop in COIN from the market. overnight on June 5.
While many consider the lawsuits to have hurt crypto businesses, Wood recently said Bloomberg that the harsher charges against Binance could possibly work in favor of Coinbase:
“We’ve got Binance under increasing regulatory scrutiny for more criminal activity, fraud being one of them, so we’ve got the competition disappearing for Coinbase, so that’s a good thing longer term for Coinbase .”
Coinbase is now ARK Invest’s seventh largest holding at 4.39%, with a total of 11,440 COIN shares spread across its ETFs ARKF, ARKK and ARKW, according to Cathie’s ARK, a website dedicated to tracking her portfolio.
Since the first quarter, ARK Invest has increased the number of COIN shares by 8.2% – which follows increases of 20.2% and 25.2% in the fourth quarter of 2022 and the first quarter of this year, according to the website.
Due to regulatory uncertainty, innovation seems to be leaving the United States for more favorable regimes. Unfortunate. I believe it will become an election year issue. https://t.co/PvqK9W27Fd
— Cathie Wood (@CathieDWood) June 4, 2023
As Wood grows increasingly bullish on Coinbase, she believes the SEC’s regulatory-by-enforcement approach has hurt cryptocurrency innovators in the United States.
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The tech-savvy CEO is also ultra bullish on Bitcoin (BTC) in the long term.
In the Bloomberg interview, Wood explained that Bitcoin was designed to thrive during times of market turbulence and regulatory uncertainty:
“Why would Bitcoin do well under these circumstances? It will work well because it is an antidote to counterparty risk in the traditional financial system.
In April 2022, Wood predicted that Bitcoin would hit $1 million by 2030.
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