Cathie Wood Invests $5M in Coinbase, Showing Faith in Crypto Ecosystem

• Prominent fund manager, Cathie Wood, has acquired an additional $5 million worth of Coinbase stock.
• Coinbase stock is currently trading around its lowest, having dropped as much as 86% in the year-to-date period.
• Cathie Wood’s company, ARK Fintech Innovation ETF (ARKF), has invested in Coinbase for the fourth time.

Prominent fund manager, Cathie Wood, has been increasing her bullishness on the crypto ecosystem, recently investing an additional $5 million worth of Coinbase Global Inc (NASDAQ: COIN) stock. This is the fourth time her company, ARK Fintech Innovation ETF (ARKF), has invested in Coinbase, with a total of 158,000 shares purchased.

Coinbase has seen a significant drop in its stock price when compared to its spot price earlier in the year. Despite closing 6.92% on Thursday, pushing the stock to a price of $34.78, Coinbase (COIN) is still trading around its lowest, having dropped as much as 86% in the year-to-date period. This has caused many investors on Wall Street to be increasingly bearish on the digital asset’s stock.

However, Cathie Wood is not deterred by the selloffs, and has taken an opportunity to stock up on Coinbase, which is now the largest crypto exchange in the United States. In December, a total of $3.2 million of the exchange’s stock was acquired by ARKF, and the latest acquisition is part of the company’s effort to solidify its bag at this time when most investors are shunning the shares.

Coinbase’s stock has been on a rollercoaster of ups and downs since its Nasdaq debut in April, and has seen some volatility in the last few weeks. Despite this, Cathie Wood is confident in her recent acquisition, and believes Coinbase will be able to capitalize on the increasing demand for digital assets. With the latest investment, she is sending a strong signal to the market that she is confident in the long-term potential of Coinbase, and the crypto ecosystem in general.