- ARK Invest resumes buying Coinbase stock, purchasing 28,632 shares amid significant market volatility.
- ARK also buys $11.19 million worth of Robinhood shares, marking its first purchase since February.
- Bitcoin’s price dips below $50,000, causing a ripple effect in cryptocurrency and traditional markets.
ARK Invest, led by Cathie Wood, has resumed buying Coinbase (COIN) shares. The firm purchased 28,632 shares on August 5th. This move follows a long period of selling Coinbase stock throughout 2024.
Volatility Hits Cryptocurrencies
Traditional equity market volatility impacted cryptocurrency markets, triggering a significant drop. Bitcoin (BTC) fell below $50,000 for the first time on August 5th, reaching a low of $49,800. This marked a steep decline from Bitcoin’s recent high of $63,000 on August 1st.
Besides Coinbase, ARK Invest bought $11.19 million worth of Robinhood (HOOD) shares, totaling 681,885 shares. This was ARK’s first purchase of Robinhood stock since February 13th.
The ARK Innovation ETF (ARKK) acquired 65,165 Coinbase shares, while the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) purchased 13,003 and 15,629 shares, respectively.
Similarly, ARKK bought 461,100 Robinhood shares, with ARKW and ARKF adding 110,402 and 110,383 shares, respectively.
On August 5th, Bitcoin’s price fell to $49,800 before recovering slightly to $55,373. Despite a 10.48% rise in the last 24 hours, Bitcoin was still down 16% over the previous week.
Impact on COIN and HOOD Stocks
On August 5th, Coinbase and Robinhood stocks experienced significant declines. COIN fell by 7.3% to close at $189.47, while HOOD dropped 8.17% to $16.42. This decline was part of a broader market sell-off affecting both traditional and cryptocurrency markets.
ARK’s Trading Strategy
ARK Invest increased its trading in cryptocurrency-related equities and ETFs based on Ether futures. On August 5th, ARK sold 454,775 shares of Jack Dorsey’s Block, valued at approximately $26 million. Additionally, ARK sold 70,316 ProShares Ether Strategy ETF (EETH) shares for $3.4 million. They also sold 17,303 ARKZ shares for about $470,000 from their Ether futures ETFs, the ARK 21Shares Active Ethereum Futures Strategy ETF.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
