Investing expert Cathie Wood is once again jumping onto a promising IPO, and investors are taking notice. The Ark Invest founder has used the Coinbase (NASDAQ:COIN) stock debut as a chance to bolster some of her funds’ portfolios.
As an investor in innovative and ground-breaking themes, Wood’s turn to COIN stock is obvious. The investment expert has previously purchased sales of burgeoning tech-adjacent stocks like Roblox (NYSE:RBLX) for Ark’s Next Generation Internet ETF (NYSEARCA:ARKW), and aggregated the first space-exploration ETF. The COIN purchase was expected, but the size of it is what is particularly interesting.
Wood’s fund purchased $246 million worth of COIN stock on the day of the direct listing. This splurge will bolster not one, but three of Ark’s ETF portfolios. The Coinbase shares will end up in the Ark Innovation ETF (NYSEARCA:ARKK), Ark Fintech Innovation ETF (NYSEARCA:ARKF) and the Ark Next Generation Internet ETF.
The IPO has already been making waves for investors. COIN stock opened at $381, well over the $250 reference price it was given the day before. This morning, COIN rose 10% before the trading session began, and is trending up for the day.
The Bottom Line on COIN Stock Today
The move forebodes a wider trend predicted by some analysts. Stephen Kelso of ITI Capital has said that Wood’s investment is a signifier of a reallocation of funds from Big Tech corporations into the crypto exchange. While investors must still wait and see, I think it’s a safe bet to assume other ETFs will similarly be adding Coinbase to their repertoires.
COIN stock has settled down to $330 today from its initial price of $381. The stock is also trading at significantly lower volume than it did at the time of listing yesterday.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.