ARK Invest, the asset management firm led by CEO Cathie Wood, has made a significant move in the cryptocurrency space, purchasing nearly $15.2 million worth of Coinbase Global stock across several of its actively managed exchange-traded funds (ETFs) on Friday.
This development comes on the heels of ARK Invest’s previous decision to trim its position in Coinbase, but the recent buying activity suggests a renewed bullish stance on the cryptocurrency exchange.
According to ARK Invest’s daily trade disclosures, the firm purchased 66,545 Coinbase shares through the ARK Innovation ETF (ARKK), 16,832 shares through Next Generation Internet ETF (ARKW), and 9,477 shares through Fintech Innovation ETF (ARKF). This activity coincided with a sharp surge in Coinbase stock, which closed the trading session at $164.32, up about 16.4% on the day.
Bitcoin holders, meanwhile, are facing a significant challenge as inflation eases. Anthony Pompliano, a prominent Bitcoin entrepreneur, told Fox Business on Thursday that investors are being forced to rethink why they hold the asset as inflation data cools.
‘I think the challenge for Bitcoin investors is, can you hold an asset when there is not high inflation in your face on a day-to-day basis?’ Pompliano said. ‘Can you still believe in what Bitcoin’s value proposition is, which is that it’s a finite-supply asset. If they print money, Bitcoin is going higher.’
Pompliano’s comments come as sentiment for Bitcoin has reached multi-year lows not seen since June 2022. The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an ‘Extreme Fear’ score of 9 in its Saturday update.
US Treasury Secretary Scott Bessent, however, believes that the timely passage of the CLARITY Act could help stabilize markets and improve investor sentiment. In an interview with CNBC, Bessent argued that regulatory certainty could ease the current market downturn.
‘In a time when we are having one of these historically volatile sell-offs, I think some clarity on the CLARITY bill would give great comfort to the market, and we could move forward from there,’ Bessent said.
The CLARITY Act, proposed legislation aimed at establishing a clearer regulatory framework for digital assets in the United States, seeks to define which crypto assets fall under securities law versus commodities law, clarify oversight responsibilities between regulators, and provide more predictable compliance standards for investors.
Bessent emphasized the importance of timing, pushing for passage by June and warning that delays, especially ahead of the 2026 midterm elections, could complicate negotiations.
As the cryptocurrency market continues to navigate these challenges, ARK Invest’s $15 million Coinbase stock buy signals a bullish reversal, and the CLARITY Act offers a potential solution to the regulatory uncertainty plaguing the industry.
About the Author
