This week, the price of Coinbase stock fell to an all-time low, closing at $35.39 on Friday. Based on Decrypt's analysis of Ark's daily trading information newsletter, the full purchase was allocated to the ARK Fintech Innovation ETF (ARKF), which invests in equity securities for fintech companies. Ark Fund increased its holdings of Coinbase shares (COIN) by 164,295 shares this week, with no trades on Grayscale GBTC. The action was taken just a few days after the stock of America's leading cryptocurrency exchange hit a new record low on December 28 of $31.86 per share before rising almost 7% on Thursday. Since December 14, when the company bought 296,578 shares of Coinbase for more than $11.9 million with its cash, this is Ark's largest COIN transaction.
Following this, the company bought 5,000 and 23,509 COIN on December 22 and December 23, respectively, in two less significant purchases last week. Cathie Wood has defended the firm's stance, citing a five-year investing horizon, despite COIN's 86% decline this year and the majority of other stocks taking a beating in 2022, hurting Ark's funds' performance.
According to the most recent Bank of America Fund Manager Survey, "cash levels have not been this high since the 9/11 disaster in 2001," Ark CEO said in her year-end note to investors that "fear about the future is evident these days, although catastrophe has typically spawned potential."
The CBOE stocks put-to-call ratio, which reached 2.4 on Wednesday and is a new high for the measure even when compared to the early 2000s tech crash and the 2008 financial crisis, was also addressed in the statement. When this indicator is high, it suggests that the market is overly bearish; when it is low, it denotes the beginning of a bubble.
