By Bitcoinist - 9 months ago - Reading Time: 2 minutes
Elon Musk Endorses Pro-Crypto Ark Invest In Tesla Earnings Call
Elon Musk, the CEO of Tesla, recently praised ARK Invest’s analysis as “the best” during the last earnings call on July 20. This endorsement is noteworthy as ARK Invest, a pro-crypto asset manager, is one of the largest shareholders of Coinbase Global (COIN), the leading cryptocurrency exchange in the United States.
Musk said users should follow Ark Invest’s research, where they can preview Tesla’s short variances in gross margin and profitability. In his view, these variances are “minor” relative to the long-term picture and holding Tesla’s stock is a “big long-term investment”.
Although Tesla posted all-time high quarterly revenue and stock prices briefly rose after the earnings call, prices slumped in the after-market hours and are lower as of July 22. At press time, Tesla’s stock is trading at $260, 1% lower on the last day.
ARK Invest, Coinbase, And Bitcoin ETF Applications
ARK Invest’s mention can be a boost for the fund manager. Besides analyzing stocks, the Cathie Wood-led firm actively comments on Bitcoin and holds COIN. Recently, Cathie Wood said Bitcoin may rally to $1.5 million by 2030. At the same time, ARK Invest is one of the largest holders of COIN.
The COIN stock price wasn’t spared the market volatility as witnessed in 2022 when crypto asset prices fell as macro-economic factors wrung the market, forcing capital to safe haven, supporting gold and the greenback. However, COIN rebounded in 2023 alongside the recovery of crypto prices, including Bitcoin reaching new all-time highs.
Despite regulatory scrutiny by the Securities and Exchange Commission (SEC), Coinbase is expanding its workforce with plans to recruit more talent. This signals the company’s confidence in its future despite its current headwinds.
Meanwhile, Coinbase Custody, the institutional custody arm of the exchange, is in high demand from Wall Street firms applying for a spot Bitcoin ETF in the US. These firms view Coinbase Custody’s security measures as industry-leading, a critical factor in the SEC’s consideration of approving spot Bitcoin ETFs to protect retail investors from undue risk. Coinbase Custody is insured by Lloyd’s of London and regulated by the New York State Department of Financial Services (NYDFS).
Although the SEC has not yet approved any spot Bitcoin ETFs in the US, the increasing demand for Coinbase Custody among Wall Street funds indicates a positive outlook for potential approval in the near future.
Tesla Holds Bitcoin
Amid Musk’s comment, Tesla has maintained its Bitcoin holdings for four consecutive quarters, indicating Musk’s continued bullish sentiment toward the cryptocurrency. Musk has previously believed that Bitcoin is “one of the few things that are real.”
Musk’s endorsement of ARK Invest and Tesla’s ongoing investment in Bitcoin is considered a positive signal for the cryptocurrency market. It suggests that influential figures in the tech industry see a bright future for Bitcoin.
Original source: Bitcoinist