Ark Invest said Coinbase is poised to benefit from the crash of rival exchange FTX despite near-term weak sentiment in the crypto space, as the fund group recently resumed buying the stock for its largest ETF.
While FTX’s fall, and the subsequent arrest Monday of its founder, could delay certain developments in the space, Ark Research Director Frank Downing said during a webinar, Coinbase is set to thrive once regulatory clarity in the segment comes.
“We think that over the medium to long term, while the industry is set back now, Coinbase really will be a share gainer here as momentum and trust flows away from this kind of frontier in the international world to the more trusted, more regulated exchanges,” he said.
Unlike FTX, Downing added, Coinbase — as the largest publicly-traded crypto exchange in the US — produces quarterly financial statements and auditing firm Deloitte certifies that its assets are backed one-to-one.
“In an environment of tighter regulations, Coinbase’s standing could prove as a moat compared to some of its less regulated counterparts,” he said.
Buying more COIN
Ark Invest has eight ETFs trading in the US with combined assets of roughly $12.4 billion, according to ETF.com. Its largest ETF upped its position in Coinbase last week as centralized exchanges seek to offer more transparency in the wake of FTX iflas başvurusunda bulundu.
The fund manager bought 78,982 shares of Coinbase for its Ark İnovasyon ETF (ARKK) — a position that represented nearly 0.05% of the fund.
Coinbase’s stock price — down about 84% year to date — was down about 9% Tuesday, as of 4:00 pm ET, setting a new low for the shares since the firm’s 2021 listing on the Nasdaq.
ARKK has nearly $7.7 billion in assets under management. The ETF is down about 64% year to date and down about 9% over the past month.
Coinbase stock made up 3.53% of ARKK, as of Tuesday — ranking 14th-highest of the ETF’s 31 holdings. The Coinbase shares in the fund have a market value of roughly $250 million.
Bir Ark Invest sözcüsü hemen bir yorum talebi göndermedi.
Owen Lau, an executive director at Oppenheimer & Co., told Blockworks that the overall sentiment for Coinbase is weak after the collapse of FTX. But he likened that sentiment to those felt by financial giants such as Goldman Sachs and Morgan Stanley after the collapse of Lehman Brothers.
“It was actually a good time to buy the industry leaders,” Lau added. “It took time for these stocks to recover, and further downside risk is still uncertain, but Ark has a long investment horizon which could take advantage of the situation here for Coinbase.”
Temmuz ayı sonlarında Ark Invest Yaklaşık 1.4 milyon Coinbase hissesi satıldıO zamanlar değeri yaklaşık 79 milyon dolardı. SEC az önce Coinbase listesindeki dokuz jetonu menkul kıymetler olarak sınıflandırdı eski bir Coinbase ürün yöneticisinin ve ona yakın kişilerin gizli bilgileri insider trading.
The following month, Ark Invest analyst Yassine Elmandjra said the company was bullish on Coinbase, noting that the crypto exchange’s BlackRock ile ortaklık could be a catalyst for bitcoin’s price to rise by up to $500,000.
On Nov. 8 and 9 combined — as news was circulating about FTX’s “liquidity crunch” and Binance’s potential buyout of the exchange — Ark Invest bought nearly 540,000 shares of Coinbase for ARKK. Crypto stocks, including Coinbase, düştü amid the developments.
FTX iflas başvurusunda bulundu on Nov. 11. A week later, on Nov. 18, Ark reported buying 255,000 more Coinbase shares for ARKK.
Exchanges seek transparency after FTX debacle
Ark Invest’s latest buy of Coinbase shares comes as rival exchanges have looked to offer more transparency in the wake of FTX’s crash.
Coinbase Baş Güvenlik Sorumlusu Philip Martin şunları söyledi: 25 Kasım tarihli bir blog yazısı that it was the only crypto company “providing the transparency and assurance of a public company financial audit.” He added that Coinbase was exploring more crypto-native methods to proving reserves and unveiled a $500,000 geliştirici hibe programı başkalarını da aynı şeyi yapmaya teşvik etmek.
“For tomorrow we are working toward a decentralized system where you don’t have to trust us, or any institution,” Martin said at the time.
Her akşam gelen kutunuza iletilen günün en iyi kripto haberlerini ve içgörülerini alın. Blockworks'ün ücretsiz bültenine abone olun Şimdi.
Bekleyemiyor musun? Haberlerimizi en hızlı şekilde alın. Telgrafta bize katılın.
Source: https://blockworks.co/news/ark-invest-ftx-opportunity-for-coinbase