Ark Invest CEO Cathie Wood called Bitcoin a “financial superhighway,” highlighting key uses for the cryptocurrency in emerging markets. Noting that Ark Invest recently became one of the issuers of the spot Bitcoin exchange-traded fund (ETF) ARKB, Wood said the asset manager is focused on emerging markets and the macro environment around the world that have been “shaken” by the FED’s interest rate hikes. Meanwhile, she did not neglect to make a critical Bitcoin prediction. Here are the details…
Bitcoin forecast: Could rise above $3.5 million
“There are signals that all is not well in the world,” Wood said during a conversation at the Bitcoin Investor Day conference in New York on Friday. He mentioned countries like Nigeria, which has been one of the biggest adopters of Bitcoin due to the depreciation of the country’s currency. Therefore, Wood sees Bitcoin as both a risk-off and risk-taking tool.
Ark’s spot Bitcoin ETF has become one of the most successful Bitcoin ETFs among the ten funds launched in January. Wood is on the rise as more institutions enter this space. Because mathematically, he said, the price of Bitcoin could easily rise above $3.5 million. However, it did not give a new specific price target. But “Bitcoin has a long way to go,” Wood said. He also reminded that he previously had a price target of $1.5 million.
Ark Invest sells Coinbase profits
On the other hand, Ark Invest, one of the 10 companies that issue spot Bitcoin ETFs in the USA, attracts attention. Because Coinbase makes a profit from its shares. Ark Invest sold $52 million worth of Coinbase stock as the stock price rose above $270.
The investment firm founded by Cathie Wood issued 133,533 shares of the ARK Innovation ETF (ARKK), valued at approximately $35 million, based on a closing price of $262 on March 21. Ark also issued 59,215 shares of the ARK Next Generation Internet ETF (ARKW). It also issued another 6,778 shares from its ARK Fintech Innovation ETF (ARKF). The total sale is worth $52.3 million.
There is a record increase in Coinbase shares
The sell-off comes as Coinbase shares rose above $270 for the first time since December 2021. Coinbase shares briefly topped $276 on March 21, according to TradingView. Ark’s latest Coinbase sale is one of its most significant in 2024 so far. cryptokoin.com As we reported, the previous big sale took place on March 11. At that time, Ark had sold 270,365 Coinbase shares.
Ark Invest is actively divesting Coinbase shares in 2023 and early 2024. The company had purchased a large amount of Coinbase shares following its launch in 2021. The company prefers to sell because Coinbase shares are making a profit and the profit weight in the investment basket is increasing. The prediction that Bitcoin’s price will reach $3.5 million is also an exciting development for the crypto market.
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