ARK Investment Management LLC, led by Cathie Wood, has made a notable shift in its investment strategy. The firm recently stopped selling Bitcoin and ramped up its Coinbase (COIN) stock purchases.

Ark Invest and the Coinbase and BTC Play

Earlier this week, the Florida asset management firm acquired 64,358 shares of Coinbase, valued at approximately $11.53 million according to Arkham Intelligence on X. This marks the firm’s largest COIN purchase since August 2024.

As reported, the firm acquired the stocks without selling its spot Bitcoin ETF holdings. This decision has caught the attention of analysts and investors, who are speculating on why Ark Invest bought the dip.

This strategy contradicts its earlier portfolio rebalancing move in which it sold $9 million in BTC ETFs. For some, this new strategy implies that Ark Invest sees greater possibilities in Coinbase stock and the broader crypto market. Despite the current market fluctuations, Cathie Wood and her firm are still willing to bet on crypto as an investment strategy.

Similarly, history shows that the firm is very strategic in adjusting its holdings based on market trends. Experts say this latest move is another instance of the firm showing its long-term confidence in digital assets. 

Cathie Wood expressed her confidence in the market in an X post, noting that the economy is experiencing trends that could lead to a deflationary boom amid the Bitcoin selloff. She made this remark to reassure the community and express her optimism about the cryptocurrency industry.

The Cathie Wood and Ark Invest Strategy

One of the biggest developments in the crypto market over the past few years is the approval of spot Bitcoin ETFs in the United States. These ETFs have attracted institutional investors, increasing Bitcoin accessibility and liquidity. 

Despite the firm’s portfolio rebalancing strategy in which it sold its Bitcoin ETF in the past, Cathie Wood has long been bullish on BTC. As reported earlier by Coingape, Wood reconfirmed her Bitcoin to a $1 million prediction by 2030. 

With Bitcoin ETFs making it easier for large investors to gain exposure to the asset, Ark Invest has a reason to secure its holdings. This strategic decision aligns with Wood’s vision that Bitcoin will continue to gain mainstream acceptance.

The latest move also aligns with the portfolio rebalancing strategy the firm operates by.

Is This Move Bullish for Crypto?

The timing of Ark Invest’s increased Coinbase stake and its decision to halt Bitcoin sales raises questions about what might come next. If the firm sees long-term value in Coinbase, it could signal a strong growth expectation in the market. 

Coinbase has benefited from rising interest in digital assets, and if Bitcoin’s price continues to rise, it could boost the exchange’s revenue.

While market conditions remain unpredictable, Ark Invest’s latest investment strategy suggests confidence in the future of cryptocurrency.

The post Cathie Wood’s Ark Invest Halts Bitcoin Sales, Now Buying COIN appeared first on CoinGape.

---

Filed under: News - @ March 12, 2025 8:19 pm