The explosive Bitcoin rally shows no signs of stopping as the digital coin hits yet another peak. Surging around 5% on Monday, Bitcoin soared above $72,300, surpassing its previous 2021 high with ease.
In the midst of the renewed fervor surrounding cryptocurrencies, CoinbaseCOIN has experienced a renaissance, with its shares climbing to levels unseen since its public debut in 2021. After an impressive performance in its February earnings report, COIN has surged by nearly 60%.
Following a substantial decline post the 2021 bull market, where it plummeted over 90% from its peak, the company has undergone a significant transformation through cost-cutting measures and revenue-enhancing efforts.
This recent turnaround has prompted numerous analysts to revise their price targets upwards. Notably, Goldman Sachs has upped its target from $170 to $282.
ARKK’s Darling
A beloved pick of Wall Street maven Cathie Wood, Coinbase remains a top choice for Wood, who holds a bullish outlook on both Coinbase and the broader crypto sphere. Wood recently made waves by projecting a future valuation for Bitcoin exceeding $2 million and played a key role in securing approval for spot BTS funds, with her ARK 21Shares Bitcoin ETFARKB being one of the pioneering entrants in this domain.
Commanding the largest slice of the pie in Wood’s flagship ARK Innovation ETFARKK, Coinbase constitutes over 11% of the fund and stands out as one of the rare winners among ARKK’s major holdings this year. Bigwigs like TeslaTSLA and RokuROKU have experienced a rough patch, with both stocks down nearly 30% in 2024.
Max View
Traders who share Wood’s bullish sentiment towards her fund can directly invest in the ETF or, for those seeking to amplify their exposure, leveraged funds could offer a strategic edge. For instance, the acclaimed AXS 2X Innovation ETFTARK aims to double the daily return of ARKK.
Conversely, for traders adopting a more skeptical stance towards Wood’s investment philosophy, AXS provides an alternative route with the AXS Short Innovation Daily ETFSARK, which seeks to mirror the inverse performance of ARKK—a potentially enticing option for the bears.
Recognized with the Best ETF Launch accolade at Benzinga’s 2023 Fintech Awards, TARK, launched in May 2022, underscores the meticulous care with which the fund is managed.
Photo by Kanchanara on Unsplash.