Cathie Wood's Ark Invest Buys Over $20M Crypto Shares: What Is She Betting On?

Core Insights - Ark Invest, led by Cathie Wood, has increased its investment in crypto-linked equities by over $20 million during a market downturn, indicating a bullish stance on the digital asset sector [1][6]. Ark Invest Purchases - The firm disclosed its latest trades, which included significant purchases in Block Inc., Circle Internet Group, and Coinbase across multiple exchange-traded funds [2]. - Specific purchases included $1.52 million in Block Inc., $878,794 in Robinhood Markets, and $13.5 million in other crypto-related stocks [3][4][7]. Market Context - Crypto-linked stocks have experienced declines between 20% and 50% over the past month, with Block down more than 20%, Circle down over 50%, and Coinbase down 30% [6][9]. - The broader crypto market has also seen a significant downturn, with the total market capitalization of stablecoins decreasing by $4.6 billion as of November 1, and Bitcoin slipping nearly 25% to around $86,800 [10]. Focus on Ethereum - Ark Invest has recently increased its exposure to Ethereum-related companies, including a purchase of 240,507 shares of Bitmine Immersion, which has seen its shares grow over 250% over the past year despite a recent decline [11]. - Bitmine's upcoming staking solution is projected to generate a 2.79% pre-tax yield, potentially positioning it among the most profitable companies in the U.S. [12].