With crypto prices down across the board, it's perhaps no surprise that bargain-hunting investors are out in force, looking for mispriced cryptocurrencies and crypto stocks. The one that I'm watching right now is Cathie Wood of Ark Invest, who has been buying the dip on crypto. Right now, there are two crypto stocks on Cathie Wood's investment radar.
If she is right, they both could be ready to soar higher this year. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » First up is Coinbase Global (NASDAQ: COIN), which remains a key part of Cathie Wood's overall tech portfolio. In the ARK Innovation ETF (NYSEMKT: ARKK), for example, it is her sixth-largest holding, with a 4.2% portfolio share.
As soon as Coinbase missed its quarterly earnings estimate in August and the shares fell, Wood began to load up on the stock. At one point, Coinbase was down as much as 14%, and it suddenly became a prime buy-the-dip candidate. All told, Wood spent nearly $8 million to acquire more Coinbase stock for her funds.
That's because Wood sees plenty more growth ahead for Coinbase, which is rapidly transforming from a crypto exchange into an exchange where it is possible to buy and sell just about any digital asset. That includes prediction market contracts, tokenized equities, and crypto derivatives such as perpetual futures that let investor bet on various outcomes. It's now been nearly a year since the launch of Coinbase's strategy, and it certainly seems to be bearing fruit.
For example, even though Coinbase missed on earnings, it delivered strong growth in prediction market revenue. I expect an even greater shift away from traditional spot crypto trading. Wood has also been loading up on Circle Internet Group (NYSE: CRCL).
Extract — continue reading at the source.
