Ark Invest Makes Major Move Into Crypto Stocks Despite Market Downturn

Ark Invest, led by Cathie Wood, made one of its biggest buying moves this week. On November 20, the firm purchased a large amount of crypto-related stocks across three of its exchange-traded funds (ETFs). 

Even though the crypto market has been falling for several weeks, Ark used the dip as an opportunity to increase its positions.

Ark Invest Buys Millions in Crypto-Focused Companies

According to the company’s trade filing, Ark Invest bought several major crypto-linked stocks in a single day. The firm purchased $10.1 million worth of Coinbase shares and $9.9 million in the Ethereum-focused firm BitMine. It also bought $9 million in Circle shares and $9.65 million in Bullish crypto exchange shares.

These investments were made through three of Ark’s ETFs. This includes the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). 

The buying spree continued beyond the crypto sector. Ark also deployed $16.8 million into Nvidia and $6.8 million into Robinhood, signaling a broader push into tech and fintech stocks.

Ark Buys the Dip as Crypto Market Faces a Sharp Correction

Ark’s large purchases came on a day when crypto-related stocks were dropping sharply. Coinbase’s shares were down 7.44% to $238.16, BitMine falling 10.83% to $26.02, and Circle slipping 4% to $66.93. 

Bullish crypto exchange closed slightly higher at $36.50, up 0.30% for the day but still down 37.88% for the month. Even though prices were falling, Ark Invest continued buying, suggesting the firm believes these assets will recover over time.

The drop in these stocks reflects a wider decline across the crypto market. The industry has been going through a multi-week correction. It has lost nearly $1 trillion in total market value since Bitcoin reached its all-time high last month.

Buying the Dip Despite the Downturn

Even though the crypto market has been falling for several weeks, many pro-Bitcoin that believe in the coin’s long-term value used the dip as an opportunity to increase their positions. 

Japanese-based company Metaplanet recently announced plans to raise $150 million to buy more Bitcoin. Also, Strategy has not slowed down its buying spree, believing that lower prices could offer stronger long-term value.

At the time of writing, Bitcoin is trading around $85,641, down 7.41% over the past 24 hours, according to CoinMarketCap data. Other major cryptocurrencies also recorded losses, pushing the overall crypto market down 6.26% in a single day.

Veteran trader Peter Brandt recently offered a far more cautious outlook for Bitcoin than many well-known names in the industry. In contrast to BitMine’s Tom Lee’s earlier prediction, Brandt said he doubts the token will reach $200,000 by the end of the year.