Ark Invest Bets Big on Robinhood’s Crypto Future

Ark Invest, led by Cathie Wood, has made a significant $14.2 million investment in Robinhood Markets Inc. (HOOD) shares, adding to its $9 million purchase last week. The ARK Innovation ETF (ARKK) acquired 123,336 Robinhood shares at the closing price of $115.02. This move comes after Robinhood reported a surge in its customer base, reaching 26.7 million in July, up from the prior month. The company also saw a 7% increase in total platform assets, which now stand at $298 billion, driven by rising crypto trading volumes [1].

In parallel, Ark Invest also expanded its holdings in Deere & Co. (DE), acquiring 3,410 shares through the ARK Innovation ETF and 6,863 shares through the ARK Autonomous Technology & Robotics ETF (ARKQ). These purchases amounted to $5.04 million, based on Deere’s closing price of $491.13. Deere is currently navigating economic challenges, including a $600 million impact from Trump-era tariffs. However, analysts remain cautiously optimistic about the company's future potential for recovery [1].

In addition to these key trades, Ark Invest has shown continued interest in the biotechnology and gene editing sectors. The ARK Innovation and ARK Genomic Revolution ETFs collectively acquired shares in several firms, including GeneDx Holdings Corp (WGS), CRISPR Therapeutics AG (CRSP), Beam Therapeutics Inc. (BEAM), Intellia Therapeutics Inc. (NTLA), and Twist Bioscience Corp. (TWST). The firm’s strategic approach to investing in emerging technologies aligns with its focus on innovation and disruptive trends [1].

Robinhood has been a focal point for Ark Invest recently, with the ETF checking out positively on short, medium, and long-term price trends. The investment activity in Robinhood and Deere suggests a broader strategy to capitalize on companies with strong growth potential in the post-pandemic landscape. Notably, Ark Invest has been forming strategic groups within its portfolio to enhance resilience and adaptability to market shocks. For instance, Robinhood’s CEO, Vlad Tenev, has established an “Apocalypse Squad” to ensure the company is prepared for potential crises [1].

The firm’s recent activities reflect its commitment to identifying and investing in high-growth stocks that are poised to benefit from macroeconomic trends and technological advancements. With Robinhood continuing to attract a large customer base and Deere facing external challenges that could lead to a rebound, Ark Invest’s latest trades underscore its belief in the long-term value of these companies. This aligns with its broader investment philosophy of backing disruptive innovation and market leaders [1].

The investment in Robinhood also raises questions about the broader appeal of crypto trading platforms and their role in the evolving financial landscape. With the company reporting significant growth in both user numbers and assets under management, Ark Invest’s increasing stake could signal a strategic bet on the future of digital trading platforms. Analysts suggest that Robinhood’s expansion into new financial products and services could further strengthen its position in the market, potentially attracting more institutional attention and investment [1].

Source:

[1] Cathie Wood's 'Apocalypse Squad' Play? Ark Scoops Up $14.2 Million Worth of Robinhood Stock (https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/08/47199945/cathie-woods-apocalypse-squad-play-ark-scoops-up-14-2-million-worth-of-robinhood-stock)