The ARK Innovation ETF (ARKK), led by prominent investor Cathie Wood, experienced a significant uptick on Tuesday, soaring 5.01% in intraday trading. This surge comes on the heels of a major announcement concerning one of its key holdings, Coinbase Global Inc (COIN).
Coinbase, a leading cryptocurrency exchange platform, has been selected for inclusion in the prestigious S&P 500 index. This development marks a significant milestone for the crypto industry, as Coinbase becomes the first cryptocurrency-focused company to join the widely-followed benchmark index. The news sent Coinbase's stock soaring, with shares up 10.9% on the day.
Cathie Wood, CEO of ARK Invest, welcomed the news, stating that "index-sensitive managers will be compelled to consider COIN now." This inclusion is likely to increase demand for Coinbase shares from index funds and other institutional investors, potentially driving further gains. As Coinbase is a significant holding in the ARK Innovation ETF, its strong performance has contributed to ARKK's impressive rise. The move also validates Wood's long-standing bullish stance on cryptocurrencies and blockchain technology, which form a key part of her innovation-focused investment strategy.
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