In recent months, Cathie Wood, the CEO of the investment management firm ARK Invest, has embraced cryptocurrency prospects with a slew of investments in digital assets. The American investor recently made another significant investment by buying Coinbase’s COIN.
Following the recent purchase of COIN, Coinbase has become the 12th largest crypto asset holdings for the company’s exchange-traded fund product, the ARK Innovation ETF (ARKK). In addition, the ARKK is also one of the investors in CRISPR Therapeutics and Unity, a crypto game engine manufacturer.
Meanwhile, Benjamin Budish, an expert from Barclays, recently noted that Coinbase would likely face a challenging period in 2023 as rising rates will become another price tailwind for the company’s token.
A Focus On Next-Generation Products
Using its oldest fund, ARKW, ARK Invest aims to focus on investing in equities of firms that are relevant to the company’s vision of the next generation of the digital economy. ARKW began operations in 2014, and as of January 5, Coinbase is part of the top 10 assets of the fund.
It now accounts for over 5% after the firm recently sold 500K of its Grayscale Bitcoin Trust (GBTC) shares. Meanwhile, On-chain data shows that both funds have lost over 50% of their value amid the broader crypto market bear trend over the past year.
Meanwhile, ARK’s current COIN stock purchases signify another bullish ambition by the investment firm as it continues to buy the dip. Last November, amid the turbulence in the crypto market triggered by the FTX crash, ARK purchased $12.1 million in Coinbase shares.
At the end of the same month, ARK’s COIN stake reached its all-time high of 8.7 million.
Expanding Europe Operations
Coinbase, like other crypto firms, is set on expanding its European operations as part of its 2023 growth plan. Since November 2022, the US-based crypto firm has been doubling down on its expansion drive in Europe despite the market challenges.
So far, the crypto company has added new hires, with Elke Karsken, Cormac Dinan, Patrick Elyas, and Michael Schroeder joining the Coinbase team to further its Europe expansion. Coinbase believes that Europe, and by extension, the Middle East, North Africa, and even the entire African continent hold the key to the company’s expansion due to their regulatory environment.
Furthermore, due to its upcoming Market in Crypto Assets (MiCA) law, Europe has been instrumental in Coinbase’s drive to expand into the region. Coinbase aims to be the leading crypto exchange in the world and to challenge Binance’s dominance in the sector.
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