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Ark Invest has continued to double down its bet on Coinbase with several increased ETF positions in the last few weeks.
Coinbase Global Inc (NASDAQ: COIN) stock was trading at around $219 (-2.67%) during Monday’s pre-market, a similar case has been observed in the crypto market, as Bitcoin continued to trade around $31k, down 1.13% according to Binance-backed Coinmarketcap.
However, for some serial hedge fund managers, the dip continued to offer them an opportunity to stake more. Notably, Ark Invest has continued to double down its bet on Coinbase with several increased ETF positions in the last few weeks. In late June the company added 214,718 shares of Coinbase to ARKK and ARKW. Then just last week it added another 255,478 shares of Coinbase to the same ETFs. Now, the firm is committing to that bet even further with another 206,410 shares of Coinbase to the same ETFs.
Notably, The purchase adds 155,892 shares of COIN to the ARKK ETF, bringing its weighting from 4.07% to 4.22%. An additional 50,518 were added to the ARKW ETF, bringing its weighting from 3.07% to 4.16%. The increase in the ARKW ETF has bumped up its position to seventh place, beating Grayscale’s Bitcoin Trust.
Coinbase Stock and Bitcoin Price
According to crypto market analyst PlanB, Bitcoin is sitting in a make-or-break position for long-term investors. The digital asset is retesting a support level that was created at the beginning of the year before a breakout to the ATH.
Notably, the largest crypto asset by market capitalization is 51% down from its ATH. A further drop could mean a sustained decline in Coinbase stock in the foreseeable future.
Furthermore, the company is heavily dependent on the success of the crypto market. Should the crypto trading volume drop with the market price, the company is likely to make sustained losses in the coming quarters.
Coinbase has seen its market valuation slashed by half since its direct listing earlier this year. According to market analytics provided by MarketWatch, the company has a reported market valuation of approximately $47.32 billion with 141.79 million outstanding shares.
In a bid to protect its stock market investors, Coinbase has diversified its investment in promising Defi platforms. Additionally, the firm has been working to make the crypto industry more mainstream.
Coinbase stock is expected to rebound once the crypto market renounces from the ongoing market correction. Additionally, as the crypto exchange adds more digital assets to its trading list, the volume is expected to rally and reciprocate to more revenue in the future.