Cathie Wood’s Ark Invest Adds Over $18 Million in Coinbase Stock Amid Market Downturn

In the midst of global market turbulence caused by U.S. President Donald Trump’s new tariff policies and ongoing geopolitical risks, Cathie Wood-led Ark Invest has made a bold move by increasing its stake in crypto industry leader Coinbase Global Inc. (COIN). According to The Block, Ark Invest purchased over $18 million worth of Coinbase stock in two separate transactions this week, signaling its unwavering belief in the long-term prospects of the crypto economy despite short-term market headwinds.

Ark Invest’s trading disclosures reveal that the first purchase occurred on Monday, April 7, when two of its flagship funds—ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF)—acquired a combined total of 84,514 Coinbase shares, valued at approximately $13.3 million. Specifically, ARKW bought 64,806 shares worth around $10.2 million, while ARKF acquired 19,708 shares valued at $3.1 million.

The following day, Tuesday, April 8, on the eve of Trump’s new tariffs taking effect, Ark made additional purchases. Its ARK Innovation ETF (ARKK) bought 11,522 Coinbase shares, worth approximately $1.7 million at the day’s closing price. ARKW added another 15,313 shares, valued at $2.3 million, and ARKF acquired 4,895 shares for $741,400.

Altogether, Ark purchased 115,103 Coinbase shares this week, amounting to a total investment of approximately $18.1 million. Following these acquisitions, Coinbase now holds an even more significant position in Ark’s ETFs. It represents 7.31% of ARKK’s portfolio, making it the fund’s third-largest holding with a value of $328.35 million. In ARKW, Coinbase is also the third-largest holding, with a weight of 6.62%, while in ARKF, it is the second-largest holding, accounting for 7.86% of the fund’s portfolio.

Notably, Ark Invest also sold $12.4 million worth of ARK 21Shares Bitcoin ETF (ARKB) shares on Monday, totaling 159,496 shares. According to data from SoSoValue, ARKB experienced a net outflow of $4.69 million that day. This adjustment suggests a strategic shift, as Ark appears to be reallocating funds from direct Bitcoin exposure to investments in crypto infrastructure companies like Coinbase. Compared to the short-term volatility of Bitcoin and the broader crypto market, Ark seems more optimistic about the long-term value of exchanges and the broader crypto ecosystem.

The purchases come at a time when global markets are experiencing significant volatility. Trump’s tariff policies, which took effect on April 8, caused Bitcoin prices to drop over 5% on Monday, while Coinbase shares fell approximately 12% during the same period. On Tuesday, market fears deepened, and Coinbase’s stock price briefly dipped below the $150 mark. According to The Block, Coinbase’s market capitalization fell below $30 billion for the first time since September 2024. Other crypto-related stocks, such as MicroStrategy and Galaxy Digital, also faced declines.

Despite these challenges, Cathie Wood’s “buy the dip” strategy remains consistent. In August 2024, during a market downturn, Ark purchased $17.8 million worth of Coinbase stock, which subsequently rallied over 250%. This week’s purchases indicate a continuation of that strategy and reaffirm Ark’s confidence in Coinbase’s pivotal role within the crypto ecosystem.