Cathie Wood's Ark buys US$246m of Coinbase shares, sells some in Tesla

[LONDON] Cathie Wood's Ark funds bought US$246 million worth of Coinbase shares on the cryptocurrency exchange's Nasdaq debut on Wednesday and sold some Tesla shares, according to their daily fund trading summary.

A chunky US$168 million of Coinbase shares were added to its flagship ARK Innovation fund, and the remainder went into its next generation and fintech innovation funds.

Notably, one of Wood's funds sold a US$4.4 million stake in New York Stock Exchange owner Intercontinental Exchange (ICE).

Coinbase shares were up 10 per cent in US premarket trading on Thursday, after having risen 52 per cent on their debut on Nasdaq, giving it a market capitlisation of US$71 billion, well above ICE.

Ark sold Tesla shares worth about US$178 million, though the stock is still by far their biggest bet by weightage on three of their major funds.

The move comes nearly a month after long time Tesla-bull Wood said the electric car maker's share price could reach the US$3,000 mark by 2025.

The celebrity fund manager gained prominence last year among retail investors and managed to attract a steady pile of cash into her red-hot funds.

The ARK Innovation fund saw assets under management rise from US$1.86 billion at the end of 2019 to nearly US$22 billion as of March.

REUTERS