Tag: Ark Invest

ARK Invest Buys Coinbase Shares Despite Wells Notice

by Blockchain News

Two days previous to the announcement that the Wells notification was forthcoming, ARK Invest had already sold 160,887 of its Coinbase shares using the ARK Fintech Innovation ETF. When this transaction took place in 2023, it was the first time that any of ARK Invest’s ETFs had sold Coinbase shares. In spite of the decline in Coinbase’s share price, this transaction represented the first time that any of ARK Invest’s ETFs has ever sold Coinbase shares. It is essential to take into consideration the fact that authorities and insiders at Coinbase participate in 10B5-1 selling plans months in advance, and that this tranche of sales was carried out in line with a trading strategy that was formed on August 16.

After the publication of the Wells notice, which warned of possible enforcement action by the SEC, the share price of Coinbase has not been able to recover to its former level. This is likely due to the fact that the SEC is likely to take enforcement action. Brian Armstrong, the chief executive officer of the firm, had also sold shares in his company between March 17 and March 20, only a few days before the Wells notice and the consequent decline in share price. These sales took place between March 17 and March 20.

Following the settlement that the SEC reached with Kraken on February 9, in which it was alleged that Kraken’s staking services qualified as securities, Coinbase has repeatedly asserted that its staking products are fundamentally different from Kraken’s products. This is in response to the allegations that Kraken’s staking services qualified as securities. After the conclusion of settlement talks between the SEC and Kraken, Coinbase made its claims.

In conclusion, ARK Invest has continued to purchase Coinbase shares despite receiving information from Wells and a decline in the price of Coinbase’s shares. This is the case even if the price of Coinbase’s shares has fallen. Before the Wells notice, Coinbase executed a trading plan that it had designed on August 16 in order to sell 160,887 shares from its ARK Fintech Innovation ETF. Coinbase has made the assertion that its staking products do not constitute securities in any way.

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ARK Invest Sells Portion of Coinbase Shares

by Blockchain News

Cathie Wood’s investment management firm ARK Invest has sold a portion of its Coinbase shares as the stock sees significant growth in price. After three months of active buying, ARK made its first sale of Coinbase stock in 2023, accounting for 23% of all shares acquired in March and 9% of all shares purchased this year. The remaining 1.6 million Coinbase shares held by ARK are currently valued at over $132 million.

Coinbase’s stock, which trades as COIN, has been on the rise, hitting multi-month highs as of March 21. The shares reached a price level not seen since September 2022, according to data from TradingView. Despite a 54% drop in the past year, the stock has recovered more than 130% since the start of 2023.

The upward trend of Coinbase’s stock price aligns with the positive trend in the cryptocurrency market, with Bitcoin hitting multi-month highs amid the ongoing global banking crisis. On March 22, Bitcoin surpassed $28,000, reaching its highest level in nine months. This marks a significant recovery in price levels triggered by industry crises like the collapse of FTX.

ARK Invest’s recent sale comes shortly after its largest purchase of Coinbase stock in 2023. On March 9, the investment manager bought 301,437 Coinbase shares for its ARK Innovation ETF (ARKK) and 52,525 shares for the ARK Next Generation Internet ETF (ARKW). At the time of purchase, the stock was worth about $20.5 million, but has since increased to nearly $30 million in value.

ARK Invest’s decision to sell a portion of its Coinbase shares may indicate the firm is taking profits and diversifying its portfolio. It’s worth noting that ARK Invest has been a strong supporter of the cryptocurrency industry, with Cathie Wood herself being vocal about the potential for cryptocurrencies like Bitcoin to revolutionize the financial system.

Coinbase, which went public via a direct listing in April 2021, has had a turbulent year, with the company facing regulatory scrutiny and a significant drop in the price of cryptocurrencies earlier in 2022. However, the recent surge in Coinbase’s stock price, along with the positive trend in the cryptocurrency market as a whole, may signal a brighter future for the company.

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ARK Invest Buys Record Amount of Coinbase Stock, Despite Market Volatility

by Blockchain News

ARK Invest, led by tech-focused investor Cathie Wood, has made a record purchase of Coinbase stock amidst a volatile market. Despite Coinbase tumbling by 8% on March 10, ARK Invest bought the largest amount of the stock since the start of the year, comprising around 30% of all Coinbase purchases in 2023. This exceeds their total Coinbase stock buys of around $13 million in January and $42 million in February.

In addition to Coinbase, ARK Invest has also been actively purchasing Robinhood stock. On March 9, the company bought 265,566 Robinhood shares for its ARKK fund, following similar purchases of 268,086 and 219,883 shares on March 8 and 6, respectively.

Despite the recent market turbulence, ARK Invest remains optimistic about the cryptocurrency industry and Bitcoin in particular. Cathie Wood is one of the biggest crypto bulls in the world, predicting that Bitcoin will reach $1 million in the not-too-distant future. She sees the cryptocurrency as a promising risk-on asset, along with other technological innovations like self-driving cars and genomics.

However, ARK Invest has not been immune to the market downturn. Reports suggest that the firm has earned more than 70% of its $310 million fees since the price of its ARKK fund plummeted by 76% from its all-time high in February 2021. Despite this setback, ARK Invest has earned an average of roughly $230,000 in fees daily in 2023, as the fund’s value has slightly recovered from around $30 in early January to $37.3 in mid-March.

The latest bullish investments by ARK Invest come amid renewed market volatility, with Bitcoin dipping below $20,000 for the first time since early January. The market has been rocked by the news that Silvergate crypto bank is planning to wind down operations and liquidate the bank.

Despite the challenges facing the cryptocurrency industry, ARK Invest remains committed to its bullish outlook. The firm sees continued growth and innovation in the sector, with Bitcoin and other cryptocurrencies playing a key role in the future of finance. With the backing of investors like Cathie Wood, the industry is sure to attract continued interest and investment in the years to come.

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US SEC Rejects One River Spot Bitcoin ETF Application

by Blockchain News

The United States Securities and Exchange Commission (SEC) has rejected the spot Bitcoin Exchange Traded Fund (ETF) Application filed by One River Asset Management.

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The decision by the regulator to reject the application for a rule change to list One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca came a few days earlier than the anticipated June 2nd.

 

According to the SEC, the application did not address the core concerns bordering on price manipulation noting that the company utilized “the same standard used in its orders considering previous proposals to list bitcoin-based commodity trusts.”

 

Additionally, the SEC said it was not convinced about One River Asset Management’s fraud prevention measures and the decision was made irrespective of crypto valuation.

 

“…disapproval of this proposed rule change does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.”

 

The rejection of One River’s application is a strong testament to the fact that the SEC is not ready at this time to approve a spot Bitcoin ETF. While it is unclear the measures the SEC hopes to make before it can approve a full-fledge spot ETF, Hedge Funds and managers looking to break this record are largely unrelenting in their push.

 

After its Bitcoin ETF was rejected back in early April, Ark Investments and 21Shares have refiled their application in what is hoped will meet the SEC’s requirements. Grayscale Investments is also expecting replies from the SEC with respect to the conversion of its Grayscale Bitcoin Trust (GBTC) to a full-fledged crypto ETF.

 

Beyond his optimism, Grayscale’s CEO, Michael Sonnensheim has employed a series of targeted market advertisements and strategies to force the SEC’s hand in approving its products. Failure to do this might see the Michael-lead company take the SEC to court as threatened.


For One River, the rejection came despite the firm’s board playing host to Jay Clayton, the former SEC Chairman.

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Ark Invest Refiles Application for Bitcoin Spot ETF Alongside 21 Shares

by Blockchain News

Ark Investment Management, the investment company, tagged with Cathie Wood, is taking another dig at a spot Bitcoin Exchange Traded Fund (ETF) product.

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This latest application is still filed in partnership with European ETF issuer, 21Shares. It came after about a month when the United States Securities and Exchange Commission (SEC) rejected the application for the same product.

The new application contains a proposed rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange, and per Bloomberg ETF analyst Henry Jim, the SEC has until January 24, 2023, to either approve or reject the ARK 21Shares Bitcoin ETF.

The race for a spot Bitcoin ETF has continued to heat up, despite the US SEC consistently rejecting a series of applications for such a project. The investment management firms that have been applying for these ETFs said the demand for the product is on the rise amongst Bitcoin investors, a scenario that shows that many are still not satisfied with the ProShares Bitcoin futures ETF product approved last year alongside others.

Ark Invest rejoining the race for the approval process is a bold one and the firm assured that its product seeks to “achieve its investment objective, the trust will hold Bitcoin and will value the shares daily based on the index.” 

Besides Ark Invest, Grayscale Investments is also awaiting the final decision to convert its Bitcoin Trust into a full-fledged Bitcoin spot ETF. Under the leadership of Michael Sonnenshein, the company has taken a more proactive approach, launching a campaign that will get members of the public to send messages compelling the SEC to say ‘YES’ to its application.

Should the SEC disapprove, Sonnenshein said he is ready to take the regulator to court, which showcases that the investment expert sees no distinction between the GBTC, futures-based ETF, and the spot ETF application proving too hard to get.

 

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1Bn Crypto Users Forecasted in the Next Decade, Says Coinbase CEO

by Blockchain News

Brian Armstrong, CEO of Coinbase Global Inc, said there would be as many as 1 billion users of cryptocurrencies within the next decade.

Bloomberg reported, citing Armstrong’s remarks during a commentary about price volatility related to the cryptocurrency market at Monday’s Milken Institute Global Conference.

There are currently only about 200 million users of cryptocurrencies in the global market.

During the meeting with Cathie Wood, the CEO of Ark Invest, who made a bullish prediction on bitcoin Ryan Armstrong said:

“My guess is that in 10-20 years, we’ll see a substantial portion of GDP happening in the crypto economy,”

DeFi is able to provide almost all financial services, with traditional and central institutions, usually banks, but on the blockchain. Any traditional service provided by a financial institution can be provided through DeFi. In short, Defi is a blockchain-based financial service mirrored by conventional financial services, creating new services or derivatives derived from the unique capabilities of blockchain. Because Defi does not require intermediaries like traditional banks, it can freely trade tokens or borrow tokens.

Meanwhile, Wood believes Bitcoin to be a game-changer by explaining why the cryptocurrency is soaring and gaining traction as a hedge, saying that she considers decentralized finance is great promising, urging the industry to look up to the issue of talent acquisition by adding that:

“In the case of DeFi and next-generation internet, we are seeing a lot of financial companies losing talent to crypto. So they have to take it seriously, or else they are going to be hollowed out.”

As the cryptocurrency market continues to expand, Coinbase has taken steps to expand its footprint to the rest of the world by acquiring and investing in large exchanges elsewhere.

In March, Coinbase reportedly announced plans to acquire a Brazilian holding company called 2TM, the parent company of Mercado Bitcoin – a Bitcoin exchange platform from Brazil – which is regarded as the largest crypto exchange in the Latin American region.

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Cathie Wood’s ARK Invest Puts Bitcoin At $1 Million By 2030

by NEWSBTC

Investment firm ARK Invest has revealed its bullish outlook for bitcoin. It is not the first time that the company would be taking such a bullish stand on the digital asset. But it is the first time that it is putting the price of the cryptocurrency at such a high price point. This comes following the recent market crash that saw bitcoin lose about 50% of its all-time high value but this has done nothing to deter the firm from seeing a largely successful future for the digital asset.

Bitcoin At $1 Million

The latest prediction from the investment firm came in a recently published report that held a particularly promising outlook for the blockchain and the technologies that surround it. This included the application of public blockchains, of which the report put forward that bitcoin was the “most profound application” of this.

Related Reading | Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market

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For the value of bitcoin itself, the points expressed in the report held closely to that of its leading figure, Cathie Wood. Wood had earlier said that she believed that the price of bitcoin would hit the $500,000 mark in the next five years, propelled forward by institutional investors moving just 5% of their portfolios into the digital asset. The report suggested that they believed this number would double in the following half a decade, putting its price at $1 million by 2030.

Bitcoin price chart from TradingView.com

BTC resumes another downtrend | Source: BTCUSD on TradingView.com

Citing market research carried out by the firm, it put the growth rate of bitcoin in the next decade at 25-fold, saying that the digital asset possessed significant appreciation potential over this time period.

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“According to our research, Bitcoin’s market capitalization could scale more than 25-fold in the next decade, with each exceeding $1 million in value,” the report read.

Where Does Ethereum End Up?

Bitcoin was not the only digital asset that received much praise and positive outlook in this report. As stated above, the report’s stance on the market, in general, was gleaming and Ethereal was no different in this regard.

Ethereum which has been one of the fastest-growing crypto projects has been put forward as being a valuable investment option going forward and ARK Invest does not disagree. It put the second-largest cryptocurrency by market cap at a whopping $20 trillion market cap by 2030.

Related Reading | Goldman Sachs: Mainstream Adoption Won’t Boost Bitcoin Price

Given that this time frame is less than a decade away, it means that the digital asset would have to grow at least 7,000 times from the current market value to hit this valuation. However, ARK Invest remains confident in the digital asset’s ability to appreciate due to its dominance on financial services existing on the blockchain.

If ethereum does reach the $20 trillion market cap, then the asset’s value would rise to around $170,000-$180,000 apiece. Still less than half of bitcoin’s expected valuation by the firm, but a growth rate that would rival even the best of the best in any financial market.

Featured image from Blockchain News, chart from TradingView.com

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ETH to hit $20 trillion market cap by 2030: Ark Invest

by Cointelegraph

A new report from Cathy Woods’ ARK Invest forecasts Ethereum (ETH) will meet or even exceed a $20 trillion market cap within the next 10 years, which would equate to a price around $170,000 to $180,000 per ETH.

The report also predicted big things for Bitcoin (BTC), saying it is “likely to scale as nation-states adopt (it) as legal tender… the price of one bitcoin could exceed $1 million by 2030.”

ARK Invest is a tech focused American asset management firm based in the United States with $12.43 billion AUM.

The prediction in ARK Invest’s report Big Ideas 2022 is predicated on how quickly the Ethereum network has grown in utility and efficiency. Much of the growth over the past two years has come from decentralized finance (DeFi). ARK described the appeal of DeFi, stating:

“Decentralized Finance promises more interoperability, transparency, and financial services while minimizing intermediary fees and counterparty risk.”

According to ARK, smart contracts and decentralized apps (DApps) on Ethereum is “usurping traditional financial functions at the margin.” The report highlighted that banking and lending, exchanges, brokerages, asset management, insurance, and derivatives can all be found on Ethereum-based smart contracts.

What’s more, DeFi is a lot more efficient too. ARK estimated that DeFi outperformed traditional finance over the last twelve months in terms of revenue per employee $88 million to $8 million.

In terms of Bitcoin, the report forecasts $1.36 million per BTC with a market cap of $28.5 trillion by 2030. ARK researchers assigned an estimated future value to eight of Bitcoin’s use cases, and used the sum of all of them to reach their conclusion about BTC price. 

By 2030, the firm expects Bitcoin to account for 50% of global remittances at 1.5x velocity, 10% of emerging markets’ currency, 25% of US bank settlement volumes, 1% of nation-state treasuries worldwide, 5% of global high net worth individual (HNWI) wealth, 2.55% of institutional asset base, 5% of the cash from S&P 500 companies, and 50% of gold’s total market cap.

ARK also argued that Bitcoin mining “could revolutionize energy production.” While global concerns have been raised about the tremendous amount of energy that Bitcoin mining requires, the researchers believe that “Bitcoin mining will encourage and generate more electricity from renewable carbon-free sources.”

“The addition of Bitcoin mining into power developers’ toolboxes should increase the overall addressable market for renewable and intermittent power sources.”

Related: Ban less likely? Putin says crypto mining has advantages in Russia

Both ETH and BTC have had a rough past seven days by falling 22.2% and 13% respectively according to CoinGecko.