Cathie Wood-led ARK Investment Management bought over a million shares of financial services company Robinhood Markets Inc HOOD at an estimated valuation of about $10 million based on Tuesday's closing price.
The purchase was done via the ARK Next Generation Internet ETF ARKW . Robinhood is the 16th largest holding in the fund with a weight of 2.74% according to ARK's website.
Also Read: How To Invest In Startups
The accumulation comes on a day when Robinhood shares closed 3.09% lower, in line with the broader markets that got rattled following Federal Reserve Chair Jerome Powell's testimony before Congress. Powell said the central bank would be prepared to increase the pace of rate hikes if faster tightening seems to be warranted.
Robinhood shares have lost over 10% in the last month. In late February, the company revealed it is facing an investigation by the Securities and Exchange Commission (SEC) regarding its cryptocurrency business. The SECs action against the company came amid a wave of regulatory action after cryptocurrency exchange FTX filed for bankruptcy.
Moreover, a rout in financial markets following fears of longer-for-higher rate hikes has also not helped the stock. Despite the barrage of negative factors, the stock is still up over 16% on a year-to-date basis supported by a resurgence in crypto trading.
Another Buy: Wood's funds also bought over 55,000 shares in the cryptocurrency exchange platform Coinbase Global Inc COIN at an estimated valuation of over $3.4 million. The purchase was done via the flagship ARK Innovation ETF ARKK and the ARK Next Generation Internet ETF.
Read Next: Tesla, Amazon, Crowdstrike, WW International, Sea: Why These 5 Stocks Are Drawing Investors Attention Today?
