Cathie Wood completes Coinbase as rivals Binance and FTX join forces

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(Bloomberg) — Cathie Wood’s funds have increased stake in crypto exchange Coinbase Global Inc. after its main rival Binance signed a deal to buy FTX’s non-US business.

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Three Ark funds bought more than 420,000 shares in Coinbase on Tuesday, according to daily trading information from Wood’s Ark Investment Management LLC. Previously, Ark funds bought shares of the US company on Oct. 24, their first purchase since July.

Ark rallied in shares as Coinbase plunged 11% on Tuesday to the lowest since July 1, amid concerns over how Binance’s potential acquisition of FTX will reshape the $1 trillion-plus industry. dollars which is already facing a prolonged market downturn.

Cryptocurrencies also fell as traders fear the potential deal could signal more trouble in the industry. Bitcoin fell 3.8% on Wednesday, extending a 9.6% decline in the previous session. The world’s largest coin by market value had, at one point on Tuesday, fallen to a two-year low.

READ: Asian crypto stocks trail US peers lower as Bitcoin plunges

Billionaire Changpeng “CZ” Zhao shocked the crypto world on Tuesday with a move to take control of FTX.com, the struggling company run by his chief rival and former disciple, Sam Bankman-Fried. The acquisition does not involve FTX.US, a separate exchange also founded by Bankman-Fried.

Coinbase CEO Brian Armstrong said the liquidity crunch that prompted Binance’s tentative deal with FTX would not happen at Coinbase because the company does not engage in “risky behavior.” His company has no plans to buy FTX US, he said in an interview with Bloomberg Television.

The Wood Company is Coinbase’s fourth-largest shareholder, holding more than 7.7 million shares or 4.3% of the company’s stock as of September 30.

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