Cathie Woods’ ARK Buys 238K More Shares in Coinbase Exchange Amid Crypto Rout

The purchase adds to the more than 400,000 Coinbase shares bought by ARK’s exchange-traded funds earlier this week.

AccessTimeIconNov 10, 2022 at 2:43 p.m. UTC
Updated May 9, 2023 at 4:02 a.m. UTC

ARK Investment Management exchange-traded funds (ETF) purchased 237,675 shares in crypto exchange Coinbase (COIN) as the stock retreated amid fallout from the near-collapse of rival FTX.

ARK, led by Cathie Woods, purchased over 400,000 shares in Coinbase earlier this week.

  • Copper-to-Gold Ratio Drops, What Does This Mean for Crypto?
    00:51
    Copper-to-Gold Ratio Drops, What Does This Mean for Crypto?
  • U.S. Presidential Election Will Now Be a 'Very Competitive' Race: Kevin O'Leary
    00:58
    U.S. Presidential Election Will Now Be a 'Very Competitive' Race: Kevin O'Leary
  • SEC's Gensler Was 'Consistent' Despite Being 'Fried Like a Chicken' Before the Senate: Kevin O'Leary
    00:59
    SEC's Gensler Was 'Consistent' Despite Being 'Fried Like a Chicken' Before the Senate: Kevin O'Leary
  • Bitcion Mining Is 'Real Estate' Play: Kevin O'Leary
    00:59
    Bitcion Mining Is 'Real Estate' Play: Kevin O'Leary
  • The majority of the recent purchases were bought in ARK’s Innovation ETF, with additional shares in its Next Generation Internet ETF and the Fintech Innovation ETF, according to company disclosures.

    Coinbase said this week it has minimal exposure to FTX, with just $15 million on deposit there to facilitate business operations and customer trades. Further, Coinbase said it has no exposure to FTX's token FTT – which plunged about 80% Tuesday – and no exposure to FTXs' sister company, Alameda Research.

    “While COIN has minimal exposure to FTX, before there is enough evidence that the contagion risk is contained, the pressure on crypto prices will likely weigh on COIN,” Oppenheimer analyst Owen Lau told clients in a research note Thursday morning. The firm lowered its price target to $89 from $107, maintaining an outperform stock rating.

    Coinbase shares slumped about 22% this week through Wednesday. They rose 12% to $51.50 in early trading Thursday.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.