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

cointelegraph.com:

In an interview with Bloomberg, ARK Invest CEO and chief investment officer Cathie Wood 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 Coinbase’s biggest competitors.

ARKK purchased nearly 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 added 35,700 shares (worth $1.8 million) and 53,900 shares (worth $2.8 million), respectively. 

Across all three funds, Ark’s average entry price is $272.75 to $282.93, with the firm’s total position currently 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 she’s still bullish, her reasoning boils down to this: SEC enforcement will lead Coinbase to become the only game in town when it comes to cryptocurrency exchanges in the United States. Of course, this assumes that Coinbase will triumph in its own legal battles with the SEC.

Wood explained that she sees a difference 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 may also be facing more serious charges.

Binance CEO Changpeng Zhao, or CZ for short, was faced 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 violated the Commodity Exchange Act and several regulations of the Commodity Futures