News out on Reuters that Cathie Wood's ARK funds has bought another $64 million worth of Coinbase shares while selling $99.5 million worth of Tesla shares.
In the last week alone, ARK has bought around 1.2 million COIN shares and while it sold nearly 135,000 Tesla shares, it is still the firm's biggest position in its funds. So what does this tell us about one of the most popular and successful investors of the past couple of years?
By buying more COIN shares, they're giving their investors more exposure to cryptocurrencies. This is another major institutional player pouring market into the crypto economy. They surely wouldn't want it to fail.
Another curious bit was the sale of the TSLA shares given how she has been on the record that it could go as high as $4,000. That's more than 5x the current price. Does ARK believe that COIN could go up more than 5x or is this just some prudent risk reduction? Time will tell.
My personal take is that it is clear that many of the growth oriented funds see crypto as a strong area for growth in the next 1-2 years with a number of potential IPOs coming up. Kraken's looking at listing and I believe it will become a race to see who can list and at what multiple.
All that money flowing in to people who embrace crypto means this party is going to go on for a while longer still despite the down days.
Title Image: Free use image of Cathie Woods