ARK Invest Invests in Coinbase as Bitcoin Price Falls, What’s the Strategy?

Jakarta, Pintu News – When the tech market declined, and Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- hit its lowest point in months, ARK Invest decided to buy Coinbase shares.

The asset manager has acquired 41,032 Coinbase Global Inc. (COIN) shares for $9.3 million. This purchase comes after over two months since ARK Invest sold $4.3 million of COIN shares in late December.

Check out the full news here!

ARK Invest Buying Strategy

ARK Invest capitalized on the decline in stock prices to add to its ARK Next Generation Internet ETF portfolio. This ETF focuses on long-term capital growth by investing in companies’ stocks related to the next generation of internet themes.

This latest purchase shows ARK Invest’s confidence in Coinbase’s long-term potential despite declining stock. Coinbase faced a challenge when BofA Securities lowered its stock price target from $363 to $311.

This decline is due to increased competition and pressure on transaction revenue, which is Coinbase’s main source of income.

However, ARK Invest still seems optimistic about Coinbase’s prospects, especially after the company reported better-than-expected fourth-quarter earnings.

Read also: Pi Network (PI) Surges 75% Today (2/27/25), Can It Break $4 in March?

Impact of the New Tariff Policy

Donald Trump’s announcement of new tariffs affected stock markets, including tech stocks and risky assets such as Bitcoin (BTC). These tariffs include imported goods from Canada and Mexico and a 10% tariff on goods from China.

This policy raised concerns about inflation and greater economic uncertainty, dropping stock and crypto asset prices. In the past 24 hours, over $1 billion worth of liquidations have occurred in the crypto market.

Bitcoin (BTC) fell 3.5% to $88,534, the lowest level since November last year. Meanwhile, the overall crypto market capitalization fell 3.2% to $3.04 trillion. The Nasdaq Composite Index, which is heavily populated by tech companies, also fell 1.35%.

Read also: Bitcoin Plummeted 5% to IDR1.3 Billion, Why did the Crypto Market Crash Today (2/27/25)?

ARK Invest’s Decision on Bitcoin ETF

In addition to buying Coinbase shares, ARK Invest also sold 98,060 shares of the ARK 21Shares Bitcoin ETF (ARKB) held by the ARKW fund. This sale was worth approximately $8.6 million, based on the ETF’s closing price of $87.86 on Tuesday.

This move may be part of ARK Invest’s portfolio rebalancing strategy to optimize investment performance. The decision to sell Bitcoin (BTC) ETF shares and buy Coinbase shares shows ARK Invest’s selective approach to managing its crypto and technology assets.

It also signals their confidence in Coinbase’s recovery and long-term growth, especially after the SEC dropped its lawsuit against the company.

Conclusion

With ARK Invest’s strategic move amidst an uncertain market, they seem to see significant growth opportunities for Coinbase in the long term. Despite the challenges, this belief is supported by Coinbase’s strong financial performance and the ever-changing market dynamics.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. Ark Invest Bought Coinbase Dip as Bitcoin Fell to Multi-Month Lows. Accessed on February 27, 2025
• Featured Image: Cryptoslate