In a significant move within the cryptocurrency investment landscape, Ark Invest has ramped up its acquisition of crypto-related stocks, making it the largest daily purchase this week. On Thursday, the investment firm, led by Cathie Wood, allocated a substantial $10.1 million to Coinbase shares. Additionally, it invested $9.9 million in BitMine, a company known for its Ethereum treasury holdings, alongside $9 million in shares of Circle and $9.65 million in the Bullish crypto exchange.
These transactions were carried out through three of Ark’s exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). Beyond crypto, Ark Invest also demonstrated confidence in technology and finance by investing $16.8 million in Nvidia and another $6.8 million in Robinhood shares on the same day.
This surge in buy-outs from Ark Invest comes amid a concerning trend for crypto-related stocks, which have recently seen significant losses. On Thursday, Coinbase’s stock fell by 7.44%, closing at $238.16, while BitMine experienced a more dramatic decrease of 10.83%, finishing the day at $26.02. Circle’s share price also declined by 4% to $66.93, and although Bullish crypto exchange saw a slight increase of 0.30%, it remains down approximately 37.88% over the past month.
The downturn of crypto stocks reflects a broader trend of decline in the cryptocurrency market, marking a sustained pullback that has resulted in a tally of around $1 trillion in lost market capitalization since Bitcoin reached its all-time high last month. Current market data indicates that Bitcoin is trading around $85,641, down 7.41% in the last 24 hours, as various major cryptocurrencies also report drops. Overall, the entire cryptocurrency market is down 6.26% over the past day, showing a widespread correction impacting numerous digital assets.
In light of these downturns, Ark Invest’s strategy appears to signal a belief in the long-term potential of these assets, despite current volatility in the crypto space. The company’s substantial investment choices may also reflect a growing conviction that these assets could rebound in the future.
