FTX founder and CEO Sam Bankman-Fried’s 7.6% position in Robinhood Markets Inc (NASDAQ: HOOD) is a signal of “strong support” for the trading platform popular with retail traders, according to Ark Investment Management analyst Max Friedrich.
What Happened: Friedrich noted that Bankman-Fried filed a 13D filing with the U.S. Securities and Exchange Commission, typically associated with activist investors, unlike 13G filings which are indicative of passive holdings.
“Bankman-Fried's move seems to be a strong signal of support for Robinhood now that its share price has dropped 70% from its IPO last July,” the analyst from Cathie-Wood-led Ark Invest said in a note.
See Also: How To Buy Shares On Robinhood (HOOD)
Why it Matters: Friedrich noted that FTX and Coinbase Global, Inc (NASDAQ: COIN) have different equities strategies: FTX plans to offer equity trading on its platform and its president recently showcased a trade of Apple Inc (NASDAQ: AAPL) stock on its platform. On the other hand, Coinbase does not plan to offer "traditional securities” unless it helps foster cryptocurrency adoption, according to Friedrich.
After Coinbase released its first-quarter numbers last week, Ark raised its exposure to the company. Coinbase’s net loss in the period came in at $430 million compared with a $771 profit a year earlier.
It allows users to buy, sell and hold coins like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE).
Wood sees opportunities in Coinbase, as she sees it as having no exposure to the beleaguered Terra (LUNA) ecosystem.
Price Action: On Monday, Robinhood shares closed 5.4% lower at $10.11 in the regular session and rose 0.8% in the after-hours trading, while Coinbase dropped 9.1% in regular trading and spiked 6.4% after the bell, according to data from Benzinga Pro.
Read Next: Vitalik Buterin Sends 500 Ethereum (ETH) Coins To Dogecoin Foundation
Photo courtesy: Cointelegraph on Wikimedia
