Over time, companies and assets from different industries have been involved, with some of them directly buying cryptocurrencies and others acquiring stock of companies involved in digital assets and related activities. In the most recent development, it has been reported that ARK Invest by Cathie Wood has boosted its stake in Coinbase Global Inc. by making a fresh purchase of shares valued at nearly $8.8 million.
The recent release by the company of Cathie Wood‘s notes that ARKK (ARK Innovation ETF) has injected funds to buy more Coinbase shares, acquiring 54,988 shares for $8.8 million.
Also, the ARK Next Generation ETF and ARK Fintech Innovation ETF have bought significant amounts of Coinbase shares. ARKW acquired 15,892 shares for $2.5 million, and ARKF bought shares valued at $2 million.
Why do ARKB and similar firms inject millions into buying crypto-based stock?
As we all know, the wider crypto market has been experiencing extreme volatility, which has also pushed the prices of crypto-based companies to lower lows.
The uncertainty in the stock prices of companies directly or indirectly involved in crypto has opened new opportunities for investors and ETF offering companies to pile up stock of such companies to gain a good gain soon as the crypto market is expected to reach a new milestone in the upcoming years.
According to the investment portfolio of all the ETF under the name of ARK Invest are directly or indirectly in crypto and related services, total value of Coinbase Inc shares held is $448.7 million which means 5.85% of the total shares of COIN are held, followed by Robinhood shares and ARK Bitcoin Holding Company.
Over the past few years, the belief of traditional financiers in crypto-based companies has grown, with some of them directly jumping into the pool to add value and others continuing to boost their dominance in the decentralized community by increasing the number of shares of such companies.
When writing, the Coinbase stock was at $160.55 with a loss of 5.98% in the past 24 hours and lost $4.81 in the weekly time frame.
The press time prices of COIN stock are below its 20, 50, 100, and 200-day exponential moving averages.
Why is the crypto market falling freely?
Until publishing, the crypto market cap was $2.53 trillion with a massive loss of 11. 66%, and Ethereum was at $1,476 with a fall of 19.24% in the past 24 hours.
At the same time, the crypto fear and greed index was at 17, indicating fear in the wider market. The list of some losers includes BNB, XRP, Solana, Dogecoin, Toncoin, Avalanche, Shiba Inu, and Hedera.
According to data from CoinMarketCap, the intraday loser list has been ruled by Berachain, KuCoin, Aave, Litecoin, Maker, Lido DAO, Injective, UniSwap, and Worldcoin.
And in the 7-day time frame, the losers are Berachain, Jupiter, KuCoin token, Jito, Immutable, Celestia, Movements, Toncoin, and Official Trump.
