Cathie Wood’s Ark ditches Tesla to buy Coinbase shares

Cathie Wood's

LONDON: Cathie Wood‘s Ark funds bought $246 million worth of Coinbase shares on the cryptocurrency exchange’s Nasdaq debut on Wednesday and sold some Tesla shares, according to their daily fund trading summary.

A chunky $168 million of Coinbaseshares were added to its flagship ARK Innovation fund, and the remainder went into its next generation and fintech innovation funds.

Notably, one of Wood’s funds sold a $4.4 million stake in New York Stock Exchange owner Intercontinental Exchange.

Coinbase shares were up 10% in U.S. premarket trading on Thursday, after having risen 52% on their debut on Nasdaq, giving it a market capitlisation of $71 billion, well above ICE.

Ark sold Tesla shares worth about $178 million, though the stock is still by far their biggest bet by weightage on three of their major funds.

The move comes nearly a month after long time Tesla-bull Wood said the electric car maker’s share price could reach the $3,000 mark by 2025.

The celebrity fund manager 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.

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