Why Cathie Wood is bullish on Coinbase stock and believes Bitcoin will reach $1 million

In an interview with Bloomberg, ARK Invest CEO and chief financial investment officer Cathie Wood just recently discussed why her flagship fund, Ark Innovation (ARKK), is adding to its position in shares of Coinbase (COIN) after the Securities and Exchange Commission (SEC) sued Binance, one of Coinbases greatest competitors. ARKK bought almost 330,00 shares of COIN on June 6, 2023, worth about $17 million at the time, according to disclosure statements. Two other exchange-traded funds (ETFs), Ark Fintech Innovation ETF and Ark Next Generation Internet ETF, also included 35,700 shares (worth $1.8 million) and 53,900 shares (worth $2.8 million), respectively. Across all three funds, Arks average entry cost is $272.75 to $282.93, with the firms overall position presently valued at $1.77 billion. At the time of writing, COIN is trading at $53.90. Needless to say, the fund is deeply in the red on this trade so far. As far as why shes still bullish, her thinking comes down to this: SEC enforcement will lead Coinbase to become the only video game in town when it comes to cryptocurrency exchanges in the United States. Obviously, this presumes that Coinbase will victory in its own legal fights with the SEC.Wood explained that she sees a distinction in the accusations being brought against the two exchanges. While both are facing lawsuits by the SEC over the alleged trading and staking of unregistered securities, Binance might likewise be dealing with more major charges. Binance CEO Changpeng Zhao, or CZ for short, was confronted with a civil enforcement action filed by the U.S. regulator for derivatives in March. The action alleges that CZ and three of the exchanges affiliates broke the Commodity Exchange Act and numerous guidelines of the Commodity Futures Trading Commission.These types of accusations “have nothing to do with Coinbase,” according to Wood. For that reason, she thinks that Coinbase will endure the storm and emerge triumphant, with its most significant rival out of the picture.Its hard to state whether Woods conviction on COIN can be considered well-justified. While some experts share her view, others do not. The analyst agreement on the stock is a Hold ranking, with an average price target of $58.49, or approximately 12% to the upside from current levels.Several significant analysts have actually come forward with more bullish rate targets of $70, including John Todaro and Atlantic Equities.A 3-month chart of COIN. Source: TradingViewThe relative strength index is practically perfectly neutral at a reading of 49.7, suggesting no definitive instructions for COIN at this time.It might be that COIN is the very best and soon-to-be-only choice when it pertains to U.S.-based cryptocurrency exchanges. This alone may or may not lead to COIN cost gratitude. When examining the future potential customers of an equity, a lot of analysts tend not to look at one element in isolation. Basing an investment thesis on the sole property that a companys rivals may be doomed can lead analysts to overlook other, and maybe much more important, aspects. Might Coinbase also deal with criminal charges going forward?Its worth duplicating that Coinbase is also facing a claim from the SEC concerning the trading and staking of unregistered securities. This could eventually cause the exchange being deemed to have actually taken part in illegal activities. But perhaps much more concerning than SEC enforcement actions is the accusation that Coinbase may have invested in projects it prepared to list on the exchange before they appeared to the public.After Coinbase CEO Brian Armstrong spoke to The Wall Street Journal on June 10, reports began circulating that the business might have done just that. In the interview, Armstrong gave no adequate answer to a concern concerning whether Coinbase invests in tokens listed on the platform.Its no secret that practically every single time a brand-new token gets listed on Coinbase, the price tanks.If this was, in reality, due to an orchestrated pump-and-dump plan, it might constitute a financial crime of legendary proportions.The question is: Does any potential evidence exist for such a serious accusation?Well, yes and no.Looking at Coinbase Ventures portfolio, it does appear that as numerous as 30 jobs that appeared in the businesss investment portfolio were also noted on the exchange. Nevertheless, Coinbase Ventures claims that it does not “coordinate with review and listings groups” and is “run and staffed individually from the main service.” Factcheck: @brian_armstrong dodged the question on whether @Coinbase purchases tokens on the platform.I went through Coinbase Ventures entire portfolio, and discovered that these 30 jobs were both part of their investment portfolio, along with traded on @Coinbase exchange https://t.co/UCqy6kGpvK pic.twitter.com/ltPlhAh74x— Pledditor (@Pledditor) June 10, 2023

In an interview with Bloomberg, ARK Invest CEO and chief financial investment officer Cathie Wood just recently talked about why her flagship fund, Ark Innovation (ARKK), is adding to its position in shares of Coinbase (COIN) after the Securities and Exchange Commission (SEC) took legal action against Binance, one of Coinbases most significant rivals. As far as why shes still bullish, her thinking boils down to this: SEC enforcement will lead Coinbase to end up being the only video game in town when it comes to cryptocurrency exchanges in the United States. The action declares that CZ and 3 of the exchanges affiliates breached the Commodity Exchange Act and several regulations of the Commodity Futures Trading Commission.These types of accusations “have absolutely nothing to do with Coinbase,” according to Wood. In the interview, Armstrong offered no appropriate response to a concern worrying whether or not Coinbase invests in tokens noted on the platform.Its no secret that nearly every single time a new token gets noted on Coinbase, the price tanks.If this was, in fact, due to an orchestrated pump-and-dump plan, it might make up a monetary criminal activity of legendary proportions.The concern is: Does any prospective proof exist for such a serious accusation?Well, yes and no.Looking at Coinbase Ventures portfolio, it does appear that as numerous as 30 projects that appeared in the businesss financial investment portfolio were likewise listed on the exchange.” Factcheck: @brian_armstrong dodged the concern on whether @Coinbase invests in tokens on the platform.I went through Coinbase Ventures entire portfolio, and discovered that these 30 jobs were both part of their financial investment portfolio, as well as traded on @Coinbase exchange https://t.co/UCqy6kGpvK pic.twitter.com/ltPlhAh74x— Pledditor (@Pledditor) June 10, 2023

While this does not always imply that Coinbase used its exchange as a giant pump-and-dump plan, it may point to one more thing for monetary authorities to think about examining. Despite this, she remains bullish on the Bitcoin price, holding firm to her $1 million target.Year-to-date chart of BTC/USD. Source: Galaxy ResearchWill the next cycle leading see Woods $1 million cost prediction come to fruition?This short article does not include financial investment suggestions or suggestions.
This article is for general details purposes and is not meant to be and must not be taken as legal or financial investment advice. The thoughts, views, and opinions revealed here are the authors alone and do not necessarily reflect or represent the views and viewpoints of Cointelegraph.