Cathie Wood’s Ark buys into Coinbase, sells a bit of Tesla ReutersThyagaraju Adinarayan
2 minute read
The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton/Files
Three Ark funds add $246 mln worth of Coinbase shares
Two Ark funds sell $178 mln worth of Tesla shares
Tesla sale comes a month after an ultra-bullish call on stock
Coinbase shares rise 11% in U.S. premarket trading
LONDON, April 15 (Reuters) - Cathie Wood’s Ark funds bought $246 million worth of Coinbase (COIN.O) shares on the cryptocurrency exchange’s Nasdaq debut on Wednesday and sold some of their Tesla (TSLA.O) stock, just under a month after talking up the carmaker.
The bet on Coinbase gives Ark more indirect exposure to cryptocurrencies on top of their big bets on the likes of Tesla, which recently invested in bitcoin and said it would accept it as a payment for its cars.
"What's interesting is their unwinding of some Tesla shares after their ludicrous call on Tesla," said Karim Moussalem, head of cash equity sales at Cantor Fitzgerald Europe in London. "Selling some shares after that is a bit odd."
Celebrity fund manager Wood gained prominence last year among retail investors and managed to attract a steady pile of cash into her red-hot funds.
The ARK Innovation fund saw assets under management rise from $1.86 billion at the end of 2019 to nearly $22 billion as of March.
"Coinbase listing is a key milestone that arguably has created a lot of interest and hype, so it will be interesting to see how the entire cryptocurrency industry evolves over the coming months," said Steen Jakobsen, chief investment officer at Saxo Bank.
Reporting by Thyagaraju Adinarayan; Editing by Tom Arnold
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