- The ARK Innovation ETF made another purchase of Coinbase stock, showing continued confidence in the cryptocurrency market.
- Rising interest rates are seen as a tailwind for Coinbase's growth by analysts.
- Coinbase plans to expand its European operations as a key area of growth in 2023.
The ARK Innovation ETF (ARKK) continues to demonstrate its conviction in the cryptocurrency market as it made another purchase of Coinbase (COIN) on Thursday. This move positions Coinbase as the 12th largest holding for the fund, behind companies such as CRISPR Therapeutics and Unity. The purchase represents 3.87% of the fund's weight and the fund's cost average for COIN is $254.65.
On Thursday, COIN closed at $47.55, an 8.6% increase from the previous day, and a 23% increase in the past month. According to data compiled by FactSet, analysts have a mean price target of $61.46 for COIN.
Despite predictions of a challenging year for Coinbase, Barclays analyst Benjamin Budish believes that rising interest rates will serve as a material tailwind for the company's growth.
Recently, Coinbase announced a significant expansion of its European operations as a key pillar of growth for 2023. This move is expected to open up new markets and opportunities for the company, and further solidify its position as a leading player in the cryptocurrency industry.
The fact that the ARK Innovation ETF continues to make purchases of Coinbase stock is a clear indication of their belief in the company's potential for growth and success in the future.
Overall, the ARK Innovation ETF's continued purchases of Coinbase stock is a strong indication of their confidence in the cryptocurrency market and its potential for growth in the future. As one of the leading players in the industry, Coinbase's expansion plans and increasing market value are expected to drive growth for the company, and in turn, for the ARK Innovation ETF as well.