ARK, a leading innovator in the ETF industry, has made another massive purchase of Coinbase shares, adding $2.5 million to its portfolio. This follows a $7.5 million purchase earlier this week. For the month of January, the Active Research Knowledge group purchased a total of $28.25 million worth of the platform’s shares.
This move continues to show the investment group’s confidence in the growth potential of Coinbase, the largest cryptocurrency exchange in the US.
Significant Portion of ARK Portfolio
Coinbase is now the 12th-largest holding for the ARK Innovation ETF (ARKK), behind CRISPR Therapeutics and game engine developer Unity. The exchange now accounts for 3.87% of the organization’s assets.
This is a significant increase from the previous month, where Coinbase only made up 1.5% of the investment institution. ARK invests’ cost average for the platform is $254.65, reflecting the company’s long-term view of the crypto exchange.
Coinbase’s stock, which is listed under the ticker symbol COIN, closed at $47.55 on Thursday, an 8.6% increase from the previous day. Over the past month, the stock has risen by 23%. Analysts are predicting a mean price target of $61.46 for the stock, according to data compiled by FactSet.
Insiders are Optimistic
This purchase by ARK comes at a time when Coinbase is facing regulatory scrutiny and increased competition in the crypto exchange market. However, Barclays analyst Benjamin Budish remains optimistic about the company’s future, noting that.
“Next year is likely to remain challenging” for Coinbase, but “rising rates are set to be a material tailwind.”
Smart Money Taking Notice
This move by Active Research Knowledge is a clear indication of the growing institutional interest in the cryptocurrency market. As more mainstream investors begin to take notice of the potential of digital currencies, companies like Coinbase are likely to see significant growth in the coming months and years.
With ARK’s purchase of $28.25 million worth of Coinbase shares, they are showing their long-term confidence in the crypto exchange’s potential and the growing role of cryptocurrencies in the financial industry.