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Why Coinbase Stock Rallied Today

By Joe Tenebruso - Jun 29, 2021 at 5:30PM

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A respected investor is loading up on the cryptocurrency exchange's shares.

What happened 

Shares of Coinbase Global (COIN -1.88%) 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 (ARKF -1.58%)

So what

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. 

A miniature gold bull is on top of a keyboard button labeled buy.

Cathie Wood scooped up more shares of Coinbase Global. Image source: Getty Images.

Wood is an outspoken Bitcoin (BTC -2.55%) 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.

Now what 

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.

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Stocks Mentioned

Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
COIN
$66.15 (-1.88%) $-1.27
ARK ETF Trust - ARK Fintech Innovation ETF Stock Quote
ARK ETF Trust - ARK Fintech Innovation ETF
ARKF
$18.09 (-1.58%) $0.29
Bitcoin Stock Quote
Bitcoin
BTC
$29,368.51 (-2.55%) $-768.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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