Despite the rough month crypto has had some investors—including ARK Invest’s Cathie Wood—remain bullish on the digital asset.
Key Details
- The recent fall of crypto exchange FTX wreaked havoc on the crypto sector as many holders started to sell causing many digital coins to drop quickly.
- Many investors said it could be the end of times for crypto, but others have remained bullish and are continuing to invest money in the sector.
- Cathie Wood of ARK Invest has gone against other investors by buying more than $60 million in crypto-related investments and remains bullish.
Why it’s news
The fall of FTX sent fear through the crypto sector causing many holders to sell and digital coins to drop fast.
The fall of FTX has made Bitcoin drop to around $15,000, the lowest level in two years, and has caused many investors to pull money out of the crypto space.
Despite the fear around Bitcoin and other coins, high-profile stock picker Cathie Wood went against other investors by buying more than $60 million in crypto stocks and says conviction in the space is as high as ever.
Three of ARK’s firms have invested $62.7 million in shares of crypto exchange Coinbase, crypto bank Silvergate, and the Grayscale since the fall of FTX, according to ARK’s daily transaction reports.
Despite ARK being optimistic about crypto, other analysts are the opposite. Mizuho analyst Dan Dolev says that Coinbase’s daily trading volumes are sitting 35% below its typical yearly average. He says that consumers are worn out and uninterested in the crypto industry.
Many others expect crypto to continue to fall potential even 50% more, but ARK remains positive in the sector.
Crypto isn’t the only falling stock that ARK is investing in this month. The firm also put money into biotech Ginkgo which is down 76% this year and Tesla that is down 58%.
