Why Ark Invest dumped $75m of COIN… ahead of Coinbase’s head-turning deal with BlackRock 15 hours ago | Rob Badman https://stockhead.com.au/cryptocurr...f-coinbases-head-turning-deal-with-blackrock/ Ark Invest CEO and major Bitcoin and Ethereum bull Cathie Wood has revealed why her firm recently dumped a bunch of Coinbase (COIN) stock. Which at this stage, incidentally, appears to be absolutely woeful timing – because… BlackRock. Speaking during a Bloomberg TV interview today, the famously tech-hungry chief exec cited a warning from the US Securities and Exchange Commission (SEC) regarding nine tokens trading on the Coinbase exchange. The SEC believes AMP (AMP), Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX), Powerledger (POWR), DFX Finance (DFX), and Kromatika (KROM) are all unregistered securities. What’s more, the regulator also filed a complaint late last month against a former Coinbase employee, who it has accused of insider trading in a scheme based around leveraging advance knowledge of token listings. Wood reasoned that the SEC’s claim had created further regulatory uncertainty within the crypto industry. And that was clearly enough for Ark Invest to tread with some caution as it sold more than 1.4 million shares of COIN on July 26, worth about US$75 million at the time. Here’s how that little decision has worked out since then… Source: Google Finance Since Ark Invest made its move, the COIN stock price has increased 85% from US$52.93 on July 26 to US$98 at the time of writing. Ah well, you win some, you lose some, right? Unfortunately for Wood, Ark Invest and its investors, so far this year it’s been more a case of you win bugger all and lose a shedload. As of July 30 according to Business Insider, Ark Invest’s flagship fund – the Ark Disruptive Innovation ETF – has fallen by about 30% over the past six months. Things have at least picked up a little bit for Ark in general over the past few months since April. And they needed to – that month’s stats were shocking, with the firm’s assets under management in all of its ETFs down from a peak of more than US$60 billion in February 2021 to US$16 billion by the month’s end. But at least Wood and Ark Invest had the good sense not to knee-jerk dump all its COIN stock. According to the firm’s website, it still holds more than US$451 million worth of shares in the crypto exchange giant. Why has COIN pumped? A little firm called BlackRock It hasn’t been a great year for Coinbase, either, of course (or pretty much all tech stocks to be fair). But the reason for COIN’s recent rally can be attributed directly to the announcement that the crypto exchange last week sealed a deal that’s akin to the Tasmania JackJumpers* basketball side signing LeBron James. (*Not knocking them, they’re very good – grand finalists last season and all that.) That deal is with the world’s biggest asset manager, BlackRock, which can boast roughly 10 times the current entire crypto market cap in assets under management. And that’s more than US$10 trillion (BlackRock, not crypto unfort). The partnership will reportedly involve BlackRock and Coinbase facilitating crypto-trading capabilities for the asset manager’s many fatcat institutional investors, using its Aladdin platform. Kind of a very big deal, potentially. And Cathie Wood and Ark Invest’s thoughts on the Coinbase/BlackRock union? If they’re ruing the decision to dump a hefty amount of COIN, they’re not showing it: “BlackRock’s decision to partner with Coinbase is a strong signal that institutions consider Bitcoin and crypto a new asset class,” reads the latest Ark Invest newsletter, published yesterday.
The innitial position size. If they had .75 $B stake in it, then 10% is irrelevant. Edit : Yahoo finance, their stake : (upper nr.)
When the tide turns from good times to bad, the talking heads ( the Press) literally change the picture from beautiful to ugly and shrill.
I'm surprised she didn't look at all these Cryptocurrency support companies like COIN, HOOD, RIOT, MARA, etc. as just a binary trade on the direction of BTC. COIN may have been helped by Blackrock but since BTC is going higher she should have kept COIN. As long as the "rates have peaked" narrative continues ARKK will continue to defy the shorts.
The tide has turned, Woody's tub afloat ARKK should go up now via good luck and the wing of a prayer. Cathy will be thanking God. Ooops, wrong way up.
The low quality growth-at-any-rate trade looks like its over especially with the DXY rising and rates going back up. Looks like its back to SARK.
Markets Cathie Wood Goes on Biggest Dip-Buying Binge Since February Ark funds buy shares of 27 stocks on Tuesday amid selloff Paired with deflation tweets, Wood is ‘walking the walk’: BI Cathie WoodPhotographer: Eva Marie Uzcategui/Bloomberg By Katherine Greifeld 14 September 2022 https://www.bloomberg.com/news/arti...es-on-biggest-dip-buying-binge-since-february Tuesday’s brutal selloff in the aftermath of August’s hotter-than-expected inflation print looked like opportunity to Cathie Wood’s Ark Investment Management. The firm bought 27 stocks across its eight exchange-traded funds on Tuesday, according to data compiled by Bloomberg. The largest buy was Roku Inc., which is already the third biggest holding in the firm’s flagship $8 billion ARK Innovation ETF (ticker ARKK). The purchases came on a day when the technology-heavy Nasdaq 100 posted its worst one-day drop since March 2020, fueled by building bets that the Federal Reserve will unleash a historically large rate hike next week to stamp out price pressures. But while inflation is front-and-center for policy makers, Ark founder Wood tweeted on Monday that deflation is “in the pipeline” -- and Tuesday’s purchases suggest the firm is positioning for that. “Her buys have gone down quite a bit after January but are starting moving up last few days. It just seems like her conviction is higher now,” said Athanasios Psarofagis. Paired with Wood’s tweets Tuesday, “It seems like she is just walking the walk.” Ark’s ETF lineup has come under immense pressure in 2022 at the hands of a historically aggressive Fed. A series of jumbo rate hikes has battered the market’s speculative corners, dragging ARKK more than 55% lower in 2022. Amid the drawdown, Wood has stuck to her strategy of doubling-down on losers and offloading winners. Roku is nearly 71% lower this year, while Butterfly Network Inc and Zoom Video Communications Inc., Tuesday’s second and third largest buys, have dropped about 14% and 58% in 2022, respectively. The purchases were paired with the sale of roughly 1.5 million shares of Signify Health, which has seen its stock price soar about 160% since mid-June amid a bidding war for the company.