Crypto stocks have taken a major beating during the recent crypto market correction, but Ark Invest CEO Cathie Wood finds a major opportunity here. On Feb. 2, the asset manager increased its exposure to some of the top crypto-linked stocks, including BitMine (BMNR), Circle (CRCL), Bullish (BLSH), and Robinhood (HOOD).
In recent weeks, crypto stocks have entered a major correction. On Monday, Feb. 2, USDC stablecoin issuer Circle (NYSE: CRCL) was down by 8%, closing at $58.86. Similarly, Tom Lee’s BitMine (NYSE: BMNR) saw a 9% fall, while crypto exchange Bullish (NYSE: BLSH) stock was also down by 5%.
According to the data from Ark Daily, the Cathie Wood firm added these crypto stocks on dips via her two flagship funds, such as the ARK Innovation ETF and the ARK Blockchain & Fintech Innovation ETF. On the other hand, the ARK Next Generation Internet ETF also increased its allocation to crypto-linked equities.
The ARKK ETF bought 235,077 shares of Robinhood (HOOD) worth $21.1 million, and 274,358 shares of BitMine (BMNR) worth about $6.2 million. Furthermore, the ARK Blockchain & Fintech Innovation ETF (ARKF) also added 6,699 Coinbase shares to its portfolio.
ARK Invest’s ETFs have remained under pressure in recent months as markets continue to struggle following the October crypto market crash. Despite the ongoing weakness, ARK increased its exposure to crypto-related stocks late last month even as prices continued to decline.
Shifting up on the macro perspective, Cathie Wood noted that the inflationary pressure could reduce moving ahead.
Based on her reading of dropping inflation, Wood believes that Gold is preparing for a major fall. She said that the last two times such a gold rally occurred, inflation was in double digits.
Thus, Wood said she would favor reallocating from gold into Bitcoin, reiterating her long-term bullish outlook for the cryptocurrency. Previously, she also shared her bull-case scenario, sharing a $1.5 million BTC BTC $77 830 24h volatility: 0.9% Market cap: $1.56 T Vol. 24h: $54.11 B price target by 2030.
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