Cathie Wood, CEO of Ark Invest, buys Coinbase and Tesla shares as prices continue to fall

Cathie Wood, CEO of Ark Invest, is buying more shares of crypto-currency exchange Coinbase (COIN) and electric vehicle company Tesla on the plunge. Cathie Wood remains bullish on electric vehicles and crypto-currencies, particularly bitcoin. Ark Invest founder Cathie Wood recently reiterated that bitcoin could reach $1 million by 2030.

Cathie Wood adds Coinbase and Tesla shares

Ark Investment Management LLC funds, including Ark Innovation ETF, bought nearly 75,000 shares of Tesla and about 297,000 shares of Coinbase, reports Bloomberg December 15.

Cathie Wood scoops up more shares of Tesla and Coinbase, underscoring her faith that electric vehicles and cryptocurrency are key future trends https://t.co/v4347H24C7

– Bloomberg (@business) December 15, 2022

Cathie Wood’s Ark Invest is one of the largest shareholders in crypto-currency exchange Coinbase, with a 4.3% stake as of September. The firm also holds a 0.13% stake in Tesla, with the stock being one of the top holdings of the main Ark Invest fund.

Cathie Wood continues to buy Coinbase shares after the collapse of Sam Bankman-Fried’s FTX crypto-currency exchange. Known for hoarding shares during lows, Cathie Wood bought 420,949 Coinbase shares on Nov. 8 and 78,982 Coinbase shares on Dec. 12.

Coinbase’s share price fell to $38.69 on Tuesday. COIN’s share price jumps nearly 4 percent Wednesday to $40.19.

Tesla’s stock price has fallen below $160 amid fears of a potential recession, a hawkish Federal Reserve, and founder Elon Musk continues to reduce his stake in the EV maker.

Rise on bitcoin

Cathie Wood has clarified her view on the bitcoin price prediction. She said that she will maintain her prediction of reaching $1 million per coin by 2030.

She believes that institutional investors may backtrack on the accumulation of Bitcoin and Ethereum. Once institutional investors take their time and analyze the entry levels, they can buy Bitcoin with confidence. Furthermore, she stressed that the crypto market will recover despite the FTX collapse.

Bitcoin and Ethereum prices jumped above $18K and $1.35K on Wednesday in anticipation of a 50bp rate hike by the U.S. Federal Reserve. However, prices are sliding after Chairman Jerome Powell hinted at continued rate hikes and inflationary conditions in the market.