Cathie Wood strikes again: wildly buys $16.47 million in COIN stocks and increases investment in Bitcoin ETF, betting on a liquidity turning point.

Cathie Wood's Ark Invest has once again increased its bets on the encryption zone. The latest trading documents disclosed on Wednesday show that Ark has increased its holdings of COIN stocks by $16.47 million in a single day, while also purchasing Bitcoin ETFs, continuing its recent large-scale “buy the dip” actions in crypto-related assets.

According to the disclosure, Ark Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) collectively purchased 62,166 shares of COIN. Currently, COIN is the fifth largest holding in ARKK, with a total market value of $392 million, accounting for 5.2%. Although COIN rose 4.27% to $264.97 on Wednesday, it has still seen a decline of 26.7% over the past month, and Ark is clearly increasing its holdings against the trend.

At the same time, Ark also increased its holdings in the Ark-21Shares Bitcoin ETF, buying approximately 39,400 shares (about $1.17 million) in ARKW and ARKF. This aligns with its strategy over the past few weeks: to position itself during significant declines in encryption-related stocks, including BitMine, Bullish, Circle, and Robinhood.

Cathy Wood posted on X that the current liquidity squeeze suppressing encryption and AI stocks is “only temporary” and shared key points from her recent webinar. She believes that liquidity is about to reach a turning point, citing reasons including:

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

2. As the U.S. government shutdown comes to an end, market liquidity gradually returns.

3. The Federal Reserve is expected to continue to cut interest rates next month.

Wood emphasized in the seminar that by observing the 10-year U.S. Treasury yield, she believes that inflation has “clearly declined” over the past month. She also pointed out that new technologies, including AI, robotics, and encryption infrastructure, are bringing structural deflationary forces. Once future tariff policies are implemented, inflation may see a more significant decrease next year.

In her view, these factors collectively constitute the reason to “buy the dip,” and Ark's capital movements are clearly reflecting this macro judgment. (The Block)