Ark of History
Market Meditations | October 26, 2022
It was like flicking a coin off the edge of a tower. When Coinbase listed at the dizzying height of $381 per share, there was a slight upwards arc to $430 before a long fall back down to Earth. Within a month it had nearly halved. Market sentiment and regulatory inquiry has formed a slippery slope to today’s price of $66, but some fund managers are still onboard.
- Coinbase is a well-known entity in the crypto community, providing easy market access to both retail and commercial investors.
- It’s been under regulatory scrutiny for some time, arguing about whether tokens are securities, as well as an insider trading case.
- After the market crash in May this year it resorted to laying off 18% of its staff.
- But despite these struggles, big fund names are still heavily invested.
- The top 10 holders own about 30% of all stock, and includes The Vanguard Group and ARK Investment Management run by Cathie Wood.
- ARK is a public fund with a number of Exchange Traded Funds (ETFs) focused on different topics such as innovation, FinTech and the next generation of the internet.
- Despite selling 1.1 million $COIN in July, the firm has retained most of its holdings, and even slightly increased them in its FinTech fund.
Ark’s fund philosophy is that investments are medium to long term and should be for at least a 5-7 year cycle. Recent news about MakerDao and Google suggest that Coinbase is trying to climb back up the tower.