Cathie Wood's Ark Invest Is Buying Coinbase Stock Hand Over Fist. Should Crypto Investors Be Doing the Same?
Coinbase's future growth prospects make a "buy the dip" strategy attractive.
Overview
In crypto investing, a popular strategy is to buy the dip. And that's exactly what Cathie Wood of Ark Invest did in early August. As soon as shares of Coinbase Global (NASDAQ: COIN) dipped nearly 15% on lower-than-expected Q2 earnings, her funds swooped in and bought $8 million worth of Coinbase stock.
Right now, Coinbase has a 4.2% weighting in Ark Invest's flagship fund, the Ark Innovation ETF (NYSEMKT: ARKK), making it the fund's sixth-largest holding. So Cathie Wood obviously has a lot of conviction about where Coinbase is headed next.
Details
Should crypto investors follow her lead, or is Coinbase still too risky for your portfolio? How you answer that question really depends on how you interpret Coinbase's most recent quarterly earnings.
Source
Originally published at www.fool.com.