ARK Invest Scoops Up Robinhood Shares Despite Bitcoin Plunge

▲ Bitcoin (BTC), Robinhood / ChatGPT-generated image

ARK Investment made a bold bet on the cryptocurrency market by purchasing $34 million worth of Robinhood shares even as Bitcoin (BTC) plunged below the $66,000 level.

According to Cointelegraph on February 12 (local time), ARK Investment, led by CEO Cathie Wood, acquired approximately $34 million in shares of the online brokerage platform Robinhood while Bitcoin’s price slipped under $66,000. The purchases were executed through three funds: the ARK Innovation ETF, the ARK Next Generation Internet ETF, and the ARK Fintech Innovation ETF.

Bitcoin recently came under intensified selling pressure, breaking below the key support level of $66,000 and extending its decline. Despite cooling investor sentiment and heightened market volatility, Wood viewed the pullback in Robinhood’s share price as a buying opportunity. Market observers note that Robinhood’s active expansion of cryptocurrency trading services aligns closely with ARK Investment’s broader strategy.

This increase in holdings underscores ARK Investment’s strong conviction in the long-term growth potential of the cryptocurrency ecosystem. Robinhood continues to enhance its crypto-related features and is evolving into a platform catering to both institutional and retail investors. In particular, the scale of this purchase stands out as one of the most significant capital allocations in ARK’s recent portfolio adjustments.

Industry participants are watching closely to see whether the moves by a major asset manager, in contrast to Bitcoin’s price decline, could help shift market sentiment. The continued inflow of capital into major crypto-related companies despite Bitcoin falling below psychological support levels is interpreted as evidence that the market’s fundamental strength remains intact. ARK Investment’s decisive action is also seen as providing psychological reassurance to retail investors unsettled by panic selling.

Meanwhile, market participants are monitoring both Bitcoin’s price trajectory and the stock performance of related companies such as Robinhood while preparing strategies to respond to potential further volatility.

Disclaimer: This article is for informational purposes only and the publisher is not responsible for any investment losses incurred based on this content. The information provided should not be construed as investment advice.