Ark Investment, led by Cathie Wood, has reportedly invested in approximately $20 million worth of Block shares, demonstrating the firm’s continuing commitment to cryptocurrency. According to data from ARK Invest Daily Trades, 305,573 Block shares were acquired between June 7-8, making it the firm’s fourth largest holding at 4.81%. The shares are divided among ARK Innovation (ARKK) ETF, ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF). Block, formerly known as Square, is an American multinational technology conglomerate and digital payment company co-founded by former Twitter CEO Jack Dorsey and Jim McKelvey in 2009. The firm has a unique interest in cryptocurrencies, particularly Bitcoin.
The recent investment comes as Ark Investment has doubled down on its stake in the crypto exchange Coinbase, following a lawsuit by the U.S. Securities and Exchange Commission (SEC). Earlier this week, three Ark Investment Management LLC funds purchased 419,324 shares of Coinbase, the largest U.S.-based cryptocurrency exchange. The investment firm has been bullish on Coinbase in the past, with previous share acquisitions in May.
The SEC recently sued both Binance, the world’s largest cryptocurrency exchange, and Coinbase for issues relating to registration and unregistered securities. While these lawsuits have affected the reputation of both firms, Wood believes that the stricter charges against Binance could ultimately benefit Coinbase. She told Bloomberg that, with Binance facing increased regulatory scrutiny, competition for Coinbase is potentially disappearing, making it a stronger player in the long run.
It should be noted that Wood holds an extremely optimistic long-term view on digital assets like Bitcoin, emphasizing their ability to thrive amid market volatility and regulatory uncertainty. Her prediction that Bitcoin would reach $500,000 by 2030 drew significant attention in 2020. Despite the recent market downturn, she remains confident in her prediction, even suggesting her bullish case is considerably higher.
Ark Investment has also raised more than $16 million in mid-March for two new private crypto funds, further showcasing its dedication to the cryptocurrency space. As the market evolves and regulatory issues are addressed, it remains to be seen if Ark Investment’s confidence in large crypto-based companies like Block and Coinbase will be rewarded.
Source: Cryptonews
