Ark Invest bets on Coinbase and Robinhood instead of Tesla
Date: 2023-06-26 Author: Karina Ziganova Categories: BUSINESS
This week, Cathie Wood's Ark Invest fund significantly reduced its position in Tesla. At the same time, the company began buying securities of the Coinbase crypto exchange and the Robinhood broker. This can be seen as a sign that Wood continues to take a bullish stance on the future of the digital asset market and believes that crypto-related companies will be able to emerge from the battle with the regulator unscathed.
Ark Invest gets rid of Tesla shares
Ark Invest index funds Ark Innovation ETF and Ark Next Generation Internet ETF sold Tesla shares worth about $16 million.
Other institutional investors are also taking a bearish view of Tesla's prospects. On Wednesday, Barclays analyst Dan Levy downgraded the electric car maker's stock rating from elevated to equilibrium, and the next day, Morgan Stanley's Adam Jonas did the same.
In addition to Tesla, Ark sold a number of other blue-chip securities. On Friday, the fund got rid of 78,676 shares of Shopify worth more than $5 million, and also reduced its stake in online sports betting company DraftKings.
Cathie Wood continues to buy Coinbase shares
In parallel with the reduction of positions in large technology companies, Ark Invest has doubled its investment in the cryptocurrency sector. The Cathie Wood Foundation owns significant stakes in several US crypto firms, and thanks to a large investment in Grayscale, the Bitcoin Trust indirectly owns Bitcoin (BTC).
Jack Dorsey's Block Inc and Coinbase have been the leaders among Ark's crypto investments for a long time. In early June, the share price of the American crypto exchange fell on the news of a lawsuit filed by the US Securities and Exchange Commission (SEC) - but Wood bought off the fall and added another 419,324 shares to the existing ones.
At the moment, Coinbase quotes have recovered after a drawdown to $50.02, closing the week at $61.47.
Investments in Robinhood indicate confidence in the growth of fintech
In addition to Coinbase securities, Ark Invest acquired more than 1 million shares of Robinhood worth $15.39 million, a move that is indicative of Wood's bullish sentiment about feint companies compared to the broader tech sector
.Of course, the actions of the US Securities and Exchange Commission also affected Robinhood - last week the broker had to remove from the listing a number of altcoins, which the SEC called securities. However, the company's exchange performance is related to the dynamics of the cryptocurrency market to a much lesser extent than that of Coinbase
On Thursday, Robinhood announced the acquisition of credit card platform X1. The deal, which is estimated to be worth $95 million, will allow the online broker to offer its customers access to loans.
