Cathie Wood, CEO of ARK Invest, remains undeterred by recent regulatory actions in the crypto industry. Following her $21 million investment in Coinbase stock, she has now purchased an additional $19.9 million worth of shares in Block Inc. This buying spree comes despite the United States Securities and Exchange Commission’s lawsuits against industry giants Binance and Coinbase for allegedly offering unregistered securities.
Contrasting performance of Block Inc. and Coinbase
While Coinbase’s share price has experienced a decline in the aftermath of the SEC lawsuit, Block Inc.’s shares have seen a sharp rise during the same period. ARK Invest acquired 305,573 new shares of Block Inc. through six separate purchases between June 7-8. This investment now represents the fourth largest holding within ARK Invest’s portfolio, accounting for 4.81% of its holdings.
ARK Invest added the newly acquired shares to different ETFs, with 240,174 shares going to the ARK Innovation (ARKK) ETF, 39,099 shares to the ARK Next Generation Internet (ARKW) ETF, and 26,300 shares to the ARK Fintech Innovation (ARKF) ETF. ARK Invest now holds a total of 11,440 shares of Coinbase across its ARKF, ARKK, and ARKW ETFs, making it the seventh largest position in its portfolio, accounting for 4.39% of its holdings.
Wood’s perspective on regulation and Bitcoin
Cathie Wood believes that the intensified regulatory scrutiny faced by Binance may ultimately benefit Coinbase by reducing competition in the long run. She expresses optimism about Coinbase’s prospects. However, Wood criticizes the Securities and Exchange Commission’s regulatory approach, which she believes has had a negative impact on cryptocurrency innovators in the United States.
Wood maintains a highly optimistic long-term outlook on Bitcoin, emphasizing its ability to thrive in market turbulence and regulatory uncertainty. She views Bitcoin as an antidote to counterparty risk within the traditional financial system. In April 2022, Wood boldly predicted that Bitcoin could reach $1 million by 2030.
Despite the legal challenges faced by cryptocurrency startups and the regulatory landscape, Wood’s continued investments in Block Inc. and Coinbase demonstrate her confidence in their potential for growth.