Cathie Wood-led ARK Investment Management on Tuesday sold over a million shares of Robinhood Markets Inc at an estimated valuation of over $9 million. Shares of the brokerage platform closed over 19% lower on Tuesday over the FTX saga.
Cryptocurrency exchange Binance signed a non-binding agreement on Tuesday to buy FTX's non-U.S. unit to help tide over a liquiditycrunch at the rival exchange. Volatility in crypto and crypto-related stocks had ensued earlier when Changpeng Zhao, the founder and CEO of Binanceannounced his trading platform is about to liquidate its entire FTT holdings.
Major Purchase: Wood’s funds also bought over 420,000 shares of cryptocurrency exchange platform Coinbase Global Inc at an estimated valuation of over $21 million. The purchase was done via three of the company’s ETFs.
Coinbase is the 11thlargest holding of ARK’s flagship fund – the ARK Innovation ETF (ARKK) with a weight of over 3.94%. Shares of Coinbase closed over 10% lower on Tuesday and shed 1.22% in extended trading after investors were worried about the financials of cryptocurrency exchange FTX.
Coinbase later wrote a blog to calm investors saying it does not have a liquidity problem and that it largely holds its assets in dollars. “We ended Q3 with $5.6 billion in total available $USD resources, including $5B in cash and cash equivalents,” it said.