Coinbase: Cathie Wood strikes

Photo: REUTERS

The crypto market is currently going through a turbulent phase - and Ark Invest, the investment company led by Cathie Wood, is right in the middle of it. Yesterday, Tuesday, Ark bought 41,032 Coinbase shares worth $8.7 million for its Next Generation Internet ETF (ARKW).

It is the first time since October 8th that Ark has bought Coinbase shares for its funds. At that time, shortly before the election victory of crypto-friendly President Donald Trump, Ark had collected COIN shares worth $2.2 million. The bet paid off: After Trump's victory in early November, Coinbase's share price rose by around 80 percent to an all-time high of $349.75 by December, while Bitcoin climbed an impressive 57 percent from around $70,000 to around $109,000 in the same period.

Since then, things have gone downhill for both: Coinbase lost around 38 percent, Bitcoin around 19 percent. The recent slide in the price of cryptocurrencies this week has further exacerbated the situation. Nevertheless, Ark Invest still seems to have confidence in Coinbase. Coinbase is currently in sixth place in ARKW's holdings with a weighting of 5.5 percent (around $94.4 million).

Cathie Wood is taking advantage of the current weak phase of the crypto market and is buying heavily. In the long term, this is definitely a smart decision, as Coinbase's already good business is likely to continue to benefit from the current crypto-friendly Trump administration. The AKTIONÄR stop price for Coinbase shares of 210 euros was undercut yesterday, but in the long term, Coinbase shares remain an interesting security that investors should have on their watchlist.

Gerd Weger has been successfully active on the markets since the 1980s and is known to many stock market traders as a columnist for €uro am Sonntag or as the operator of his legendary "Millionaire Depot". In 2017, he shifted his focus from stocks to cryptocurrencies and has now published a standard work: The focus is on the valuation factors of Bitcoin and Co. The completely different approaches to fundamental analysis compared to stocks are systematically presented in the book. The considerations for tax optimization are also important. For enlightened investors and traders, all of this is essential for sustainable investment success with cryptocurrencies.