Cathie Wood’s Ark Fund Adds Crypto

Cathie Wood, the Queen of Investing, is making news for her decision to add cryptocurrency stock.  Wood also pulled the trigger on the addition and sale of electronic vehicle (EV) stocks.  Let’s take a look at the ramifications of these decisions in the context of cryptocurrency investing.

Breaking Down Wood’s Crypto Moves

Wood added Coinbase (COIN) to the Ark portfolio.  Coinbase is the largest crypto exchange in the United States.  In fact, Wood is so confident in Coinbase that she added the stock on two consecutive days.  

Wood and the rest of her Ark Investing team made waves at the start of the year when predicting bitcoin has the potential to hit a million dollars by the end of the current decade.  At the moment, bitcoin is trading around $47,000. 

All in all, Wood added slightly more than 288,000 shares of COIN, equating to $59 million.  Wood’s strong belief in Coinbase’s future is a bullish indicator for the crypto industry, Coinbase shareholders and those who own crypto.

Wood’s EV Moves Are Also Noteworthy

Wood decided the time was right to sell shares of Tesla (TSLA).  It is the second time this week that Wood sold shares of the EV automaker.  Her logic in selling now is that it is an opportune time to take profits off the table.  However, Wood went out of her way to state she is sill a believer in Tesla.  

Tesla is the largest holding within Wood’s Ark Innovation ETF that trades with the symbol of ARKK.  However, Wood’s sale of more than 52,000 Tesla shares on Tuesday amounted to slightly more than $57 million.

We would be remiss not to mention Wood also added more than 30,000 shares of BYD (BYDDY).  BYD is an electric vehicle maker based in China.  The addition of the shares equates to $1.6 million of value.

Ark Biotech Trades

Wood’s Ark Genomic Revolution ETF that trades under the symbol of ARKG scooped up 50k shares of Burning Rock Biotech (BNR).  The BNR share haul equates to slightly less than half a million dollars worth of stock.  Based in China, Burning Rock produces diagnostic tech to detect cancer.  Wood also pulled the trigger on the addition of more than 4,000 shares of Adaptive Biotechnologies (ADPT) with a total value of slightly more than $57,000.

Additional Ark Moves Of Note

Wood is clearly bullish on AeroVironment, a company that trades with the symbol of AVAV.  The investment guru added nearly 20,000 shares of AVAV earlier this week, valued at just under $2 million.  AeroVironment makes unmanned ground systems and aircraft.

Why Did Wood Sell Tesla?

Of all the transactions listed above, Wood’s sale of Tesla shares is the most intriguing.  Tesla was trading at $870 on February 28.  Today, the stock is trading above $1,100.  In the previous two weeks alone, Tesla has soared in excess of 40%.  However, the market as a whole also somewhat recovered after rampant selling that occurred at the start of Russia’s invasion of Ukraine.  

Wood’s decision to sell a portion of the fund’s Tesla shares is important as she went more than three months holding the stock without selling.  In fact, Wood added 60,000 shares of Tesla in February after selling shares of the EV automaker in January.  

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