Ark Invest Ramps Up Coinbase Accumulation, Calling Market Dip Temporary
At a time when most traders are backing away from the crypto sector, Ark Invest is moving in the opposite direction.
Key Takeaways:
- Ark Invest is aggressively buying crypto-exposed stocks during the market dip, adding over $16M in Coinbase shares.
- Cathie Wood believes the current crypto and tech sell-off is temporary and driven by a short-term liquidity squeeze.
- Ark expects liquidity to return and markets to rebound within weeks, not months, and is positioning ahead of that shift.
Cathie Wood’s asset-management firm has intensified its exposure to digital-asset equities, using the recent pullback as a chance to scale up long-term bets.
Internal trade records from Wednesday reveal that Ark increased its Coinbase stake once again, purchasing 62,166 shares across ARKK, ARKW and ARKF — a buy worth roughly $16.47 million. Coinbase already sits among Ark’s highest-conviction plays, representing about 5.2% of ARKK’s entire holdings.
The move comes after a rough month for the exchange’s stock. Coinbase closed the day at $264.97, a noticeable rebound within the session, yet still down nearly 27% over the past month. Rather than interpreting the downturn as weakness, Ark appears to view it as an entry point.
The firm didn’t stop with Coinbase. Ark also broadened its position in the Ark-21Shares Bitcoin ETF, picking up about $1.17 million worth of shares across two of its funds. The addition builds on a pattern of crypto-centric accumulation that has recently included companies such as BitMine, Circle, Bullish and Robinhood.
Liquidity Stress May Be Near Its Peak, Says Wood
Cathie Wood believes markets are misreading the current environment. In a webinar recorded earlier in November — which she reposted on X — Wood argued that the weakness across both the crypto and AI sector traces back to a short-term liquidity squeeze rather than a structural breakdown.
According to her, three catalysts are expected to relieve pressure:
- an anticipated end to quantitative tightening at the Federal Reserve’s December 10 meeting
- capital gradually returning to markets once the U.S. government funding dispute is settled
- and a potential rate cut next month, which she says remains on the table despite the sell-off
Wood pointed out that the 10-year Treasury yield already reflects fading inflation momentum. She also emphasized that the deflationary pull of new technology is strengthening — and markets tend to notice those shifts suddenly rather than gradually.
“We’ve seen this before. Liquidity returns first, sentiment follows second,” Wood said during the webinar. She reiterated that tech-led deflation is building underneath the surface and that the current sell-off will eventually be viewed as “an opportunity disguised as panic.”
A Contrarian Play on Crypto
If Ark is right, the last few weeks may represent the late stage of forced selling rather than the beginning of a deeper breakdown. The firm has adopted a buy-the-dip playbook across multiple crypto-linked equities in anticipation of a rebound once liquidity stabilizes.
Whether that thesis plays out depends largely on how quickly macro pressures unwind. For now, Ark is positioning itself for the recovery before it shows up in price action — not after.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
