Coinbase Gains in Premarket as Cathie Wood Funds Make Purchases
Bloomberg
Published Apr 15, 2021 04:55AM ET
Updated Apr 15, 2021 05:18AM ET
Coinbase Gains in Premarket as Cathie Wood Funds Make Purchases
(Bloomberg) -- Coinbase Global Inc (NASDAQ:COIN) rose in premarket trading on the second day of its highly-anticipated debut, following news that three funds at Cathie Wood’s Ark Investment Management bought shares of the biggest U.S. cryptocurrency exchange.
The stock traded at $361.98 at 4:16 a.m. in New York, up about 9% from their last close, but still lower than Wednesday’s opening price. After debuting at $381 in its direct listing on Nasdaq Wednesday, Coinbase climbed as high as $429.54 -- sending the exchange’s valuation soaring above $112 billion -- before quickly slipping back as Bitcoin fell from record highs.
Cathie Wood’s flagship Ark Innovation ETF, Ark Fintech Innovation ETF and Ark Next Generation Internet ETF bought a combined 749,205 shares of Coinbase, according to data released by the funds in an email. Shares in the first -- Ark Innovation ETF (ticker ARKK) -- also edged higher premarket.
Coinbase’s listing is seen pushing crypto even more into the mainstream of investing, exposing legions of potential buyers to digital tokens, which have grown into a $2 trillion industry in little more than a decade. Bitcoin, the original and biggest crypto coin, is valued at more than $1 trillion alone after a more than 800% surge in the past year.
At the closing price, Coinbase’s valuation on a fully diluted basis was about $86 billion. Given its size and visibility, Coinbase is likely to be popular with actively managed equity funds, particularly growth managers, essentially making a large swath of stock holders passive investors in crypto.
Growing mainstream acceptance of cryptocurrencies has spurred Bitcoin to a 120% rally since December, as well as lifting other tokens to record highs. That’s despite lingering concerns over their volatility and usefulness as a method of payment. Attention from regulators is poised to intensify as Coinbase becomes a public company.
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.