Nearly $1 Billion In Bitcoin Withdrawn Leaving Coinbase With Lowest Reserve Since 2015
Portfolio Pulse from Johnny Rice
Coinbase (NASDAQ:COIN) experienced a significant Bitcoin withdrawal, leaving it with its lowest reserve since 2015. Despite this, the company's financials remain strong, with a positive net income and EBITDA. Cathie Wood's ARK Innovation ETF (NYSE:ARKK) holds COIN as its largest asset, and the ARK 21Shares Bitcoin ETF (NYSE:ARKB) was among the first of its kind. The AXS 2X Innovation ETF (NASDAQ:TARK) and AXS Short Innovation Daily ETF (NASDAQ:SARK) offer leveraged and inverse exposure to ARKK, respectively.
February 21, 2024 | 5:49 pm
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NEGATIVE IMPACT
SARK offers inverse exposure to ARKK, targeting investors with a bearish view on ARKK's holdings like COIN.
SARK aims to deliver the inverse performance of ARKK, appealing to investors who are bearish on ARKK's holdings, such as COIN, and seeking to capitalize on potential declines.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Coinbase saw a significant Bitcoin withdrawal but remains financially strong with positive net income and EBITDA.
The large Bitcoin withdrawal could raise concerns among investors, but the company's strong financial performance and positive outlook for 2024 mitigate potential negative impacts on its stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
ARKB, as one of the first Bitcoin ETFs, benefits from the growing interest in cryptocurrency investments.
The early listing of ARKB as a Bitcoin ETF positions it advantageously in the market, potentially attracting investors looking for cryptocurrency exposure through traditional investment vehicles.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
ARKK holds COIN as its largest asset, indicating confidence in Coinbase and the crypto market.
The significant allocation to COIN in ARKK's portfolio reflects a bullish outlook on Coinbase, potentially attracting more investors to ARKK due to its exposure to the crypto market.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
TARK offers leveraged exposure to ARKK, appealing to investors bullish on ARKK's holdings, including COIN.
As a leveraged ETF, TARK aims to double the daily return of ARKK, making it an attractive option for investors with a bullish outlook on ARKK's holdings, such as COIN.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70