Shares of Coinbase Global (NASDAQ:COIN) rose 3.3% on Tuesday after top-rated fund manager Cathie Wood bought more of its stock than any other company on Monday for her popular ARK Fintech Innovation ETF (NYSEMKT:ARKF).
Wood purchased more than $20 million worth of Coinbase stock yesterday. Across all of the funds she oversees, Wood has now invested more than $1 billion in the digital asset exchange.
Wood is an outspoken Bitcoin (CRYPTO:BTC) bull. She has a staggering $500,000 price target on the cryptocurrency, which is currently trading near $36,000.
Coinbase is a prime beneficiary of Bitcoin's rising popularity among investors. The exchange titan collects hefty trading fees from cryptocurrency transactions conducted on its platform. As more people trade Bitcoin and other crypto assets, the more money it tends to make.
Unsurprisingly, the recent rally in Coinbase's stock price has coincided with a rebound in cryptocurrency prices. Bitcoin has bounced off its recent low near $30,000, and it's possible that its price and that of other digital currencies could continue to head higher. That would likely be a boon for Coinbase, as well as the investors who bought its shares today.