• Tech investor Cathie Wood has made her first purchase of 2021 of Coinbase (COIN) stock.
• Wood added 33,756 shares of COIN to ARK’s Innovation ETF (ARKK), worth around $1.45 million based on the Jan. 10 closing price.
• Coinbase shares are rising roughly 20% over the last five days, as the crypto exchange announced a second round of job cuts on Tuesday.
Tech investor Cathie Wood has made a big move this week by adding 33,756 shares of Coinbase (COIN) to ARK’s Innovation ETF (ARKK), worth around $1.45 million based on the January 10 closing price. This is Wood’s first purchase of the year and it comes after Coinbase’s stock has been on the rise for the past five days, increasing by around 20%.
The surge in Coinbase’s stock is likely due to the crypto exchange announcing a second round of job cuts this week. This news has sent shockwaves throughout the cryptocurrency community, but it has not stopped Wood from making her move. This is because she believes that Coinbase is a great long-term investment and that the job cuts are just a temporary setback.
Wood’s purchase of Coinbase stock is part of a larger trend of institutional investors investing in cryptocurrencies. The financial services industry is gradually becoming more accepting of cryptocurrency and blockchain technology, and this is evidenced by the fact that many big banks are now offering cryptocurrency trading services to their customers. This is a major step forward for the industry and is likely to lead to more institutional investors investing in cryptocurrencies.
Another factor that is likely to contribute to institutional investors investing in cryptocurrencies is the rise of digital assets. Digital assets such as Bitcoin and Ethereum have been performing very well in recent months and this has attracted the attention of many investors. As more investors become aware of the potential of digital assets, it is likely that more of them will start investing in cryptocurrencies.
Overall, Wood’s purchase of Coinbase stock is a sign that institutional investors are beginning to take cryptocurrencies seriously. It is likely that more investors will follow her lead and start investing in cryptocurrencies in the near future. This could lead to a surge in the price of cryptocurrencies and could potentially revolutionize the financial services industry.