Ark Invest increases its stake in Coinbase again, betting on a "substantial reversal" of inflation

Cathie Wood's Ark Invest continued to increase its holdings in cryptocurrency-related stocks on Wednesday, accumulating approximately $16.47 million worth of Coinbase shares, totaling 62,166 shares, distributed among the ARKK, ARKW, and ARKF funds. Currently, Coinbase is the fifth largest holding in ARKK, with a total holding value of about $392 million, accounting for 5.2% of the portfolio. Due to recent pullbacks, Coinbase's stock price has still fallen by 26.7% over the past month.

Ark also increased its holdings in the Ark-21Shares Bitcoin ETF, purchasing a total of 39,400 shares (approximately $1.17 million). Recently, Ark has been continuously acquiring cryptocurrency exposure stocks such as Coinbase, BitMine, Bullish, Circle, and Robinhood, aiming to take advantage of the positioning window after the significant pullback in the sector. Cathie Wood stated on X that the current liquidity squeeze affecting the cryptocurrency and AI sectors is expected to reverse in the coming weeks, and noted that her judgment is based on three points: 1: The Federal Reserve may end quantitative tightening (QT) at the meeting on December 10; 2: As the U.S. government shutdown issue is resolved, market liquidity will gradually return; 3: The Federal Reserve may cut interest rates again next month.

Wood mentioned in a previous webinar that the 10-year U.S. Treasury yield has reflected a "significant decline" in inflation over the past month, and pointed out that the "deflationary forces" in the technology sector are strengthening, stating, "After the tariff impacts are digested next year, we wouldn't be surprised to see a real breakthrough downward in inflation."