Ark Invest loads up on Coinbase as Cathie Wood predicts ‘real break’ in inflation

Cathie Wood's Ark Invest bought additional Coinbase shares worth $16.47 million on Wednesday, continuing its recent buying spree of crypto-related stocks.

Ark's Wednesday trade filing shows that the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech innovation ETF (ARKF) collectively purchased 62,166 shares of Coinbase Global Inc.

Coinbase represents the fifth-largest holding in ARKK, with a total market value of $392 million and a portfolio weight of 5.2% of the entire ETF. Coinbase rose 4.27% to close at $264.97 on the Nasdaq on Wednesday, but remains down 26.7% over the past month.

Ark also increased its position in the Ark-21Shares Bitcoin ETF on Wednesday, purchasing 39,400 shares (worth about $1.17 million) across ARKW and ARKF.

The company has recently stepped up its accumulation of crypto-exposed equities, including Coinbase, BitMine, Bullish, Circle, and Robinhood, aiming to capitalize on the notable decline in those stocks.

Reversal incoming

In a post on social media platform X, Ark CEO Cathie Wood wrote that the company expects the liquidity squeeze that has added pressure on the crypto and AI sector to reverse in the next few weeks, sharing a video of a webinar held earlier this month.

"We are in a bit of a liquidity squeeze — we think it's temporary," Wood said during the webinar, recorded on Nov. 14. 

Wood attributed her outlook to three factors: the company expects the U.S. Federal Reserve to end quantitative tightening at the December 10th meeting; liquidity will slowly return to markets following the resolution of the government shutdown; and the company anticipates another interest rate cut by the Fed next month.

In the webinar, Wood said inflation has declined "significantly" over the past month, from what she has observed from the 10-year Treasury yield.

"We're seeing a lot of technology indicators… suggest that the undercurrents of deflation associated with new technologies evolving are building," Wood said. "We would not be surprised to see a real break in inflation once the tariffs have passed through in the next year."

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