Ark Invest has increased its holdings in Coinbase, betting on a "substantial reversal" in inflation.

According to Odaily Planet Daily, Cathie Wood's Ark Invest continued to increase its holdings of crypto-related stocks on Wednesday, purchasing a total of 62,166 Coinbase shares worth approximately $16.47 million, distributed across three funds: ARKK, ARKW, and ARKF.

Currently, Coinbase is ARKK's fifth largest holding, with a total value of approximately $392 million and a weighting of 5.2%. Affected by the recent correction, Coinbase's stock price has still fallen by 26.7% over the past month.

Ark also increased its holdings in the Ark-21Shares Bitcoin ETF, purchasing 39,400 units (approximately $1.17 million). Ark has recently been accumulating exposure to crypto stocks such as Coinbase, BitMine, Bullish, Circle, and Robinhood, aiming to capitalize on the sector's recent significant pullback.

Cathie Wood stated on X that the current liquidity squeeze on the crypto and AI sectors is expected to reverse in the coming weeks, citing three points as the basis for her judgment:

1. The Federal Reserve may end quantitative tightening (QT) at its meeting on December 10.

2. As the US government shutdown is resolved, market liquidity will gradually return.

3: The Federal Reserve may cut interest rates again next month.

In a previous webinar, Wood stated that the 10-year Treasury yield has already reflected a "significant pullback" in inflation over the past month, and pointed out that "deflationary forces" in the technology sector are strengthening. He added, "Once the impact of tariffs is digested next year, we wouldn't be surprised to see a real breakthrough in inflation." (The Block)