Cathie Wood’s Ark Invest made significant moves in the crypto market on Thursday, making its largest daily purchase this week across three exchange-traded funds (ETFs). The firm invested a total of $10.1 million in Coinbase shares, $9.9 million in cryptocurrency treasury firm BitMine, $9 million in Circle shares, and $9.65 million in Bullish crypto exchange shares.
These transactions occurred through the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). On the same day, Ark also allocated $16.8 million towards Nvidia and $6.8 million into Robinhood shares.
Despite these investments reflecting a bullish stance, they come amid a challenging period for the crypto sector, which has seen substantial declines this week. Coinbase shares fell by 7.44% to close at $238.16, while BitMine experienced a drop of 10.83% to $26.02. Circle’s shares lost 4%, closing at $66.93, and although Bullish crypto exchange was slightly up by 0.30% at $36.50, it remains down 37.88% over the past month.
This downturn in crypto-related stocks is indicative of a broader correction in the cryptocurrency market, which has experienced a multi-week pullback, resulting in a staggering loss of approximately $1 trillion in total market capitalization following Bitcoin’s peak last month.
Currently, Bitcoin is priced around $85,641, reflecting a decline of 7.41% within the last 24 hours. Other major cryptocurrencies are experiencing similar downward trends, contributing to an overall market decrease of 6.26% in the past day.
As Ark Invest continues to purchase amid this downturn, it highlights a strategy focused on long-term growth potential, suggesting that they view the temporary drops in stock prices as buying opportunities. This approach could reflect a broader optimism in the tech and crypto sectors, despite prevailing market volatility.