Cathie Wood’s ARK Invest purchased 41,032 shares of Coinbase Global Inc. (COIN) on February 25, 2025.
The $8.7 million worth of shares will be added to the ARK Next Generation Internet ETF (ARKW), which invests in companies at the forefront of innovative technologies. With a weight of 11.89%, it is now the second-biggest stock in the ARKW portfolio.
Coinbase Rollercoaster Market Performance
Coinbase’s stock price increased by 43% in 2024. However, significant changes in the bitcoin market had previously caused problems in 2018.
On February 25, Coinbase’s stock closed the day at $212.49, which was down 6.42% from the day before and almost 20% from the week before. The drop was mirrored by a wider sell-off in cryptocurrency and IT companies due to the expectation of higher tariffs and possible economic chaos.
Despite the short-term challenges, its foundation is still strong. For example, it made $2.3 billion in sales in the fourth quarter of 2024, 138% more than last year.
Its net income also increased significantly from $273 million to $1.3 billion in the previous year.
Its stablecoin business, which makes money from interest collected on the USDC stablecoin’s collateral, has also grown significantly. According to recent data, USDC’s market value has increased to nearly $56 billion, a more than 60% increase from late 2024.
Trad-Fi Competition and Regulatory Developments
Recent changes offer relief from previously hostile regulations, even amidst ongoing regulatory uncertainty. For instance, the U.S. Securities and Exchange Commission dismissed lawsuits against Coinbase, OpeanSea, and UniSwap.
Moreover, as laws become more crypto-friendly, traditional financial institutions could be driven to join the crypto industry. The growing competitiveness could strain transaction revenue, which is Coinbase’s primary income source.
Coinbase’s success will depend on its capacity to adjust to evolving regulations, outcompete rivals, and consistently innovate.
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