Key Points:
- Cathie Wood’s ARK Invest has resumed purchasing Coinbase shares, barely a day after COIN’s stock price fell due to the Wells notice issued by the SEC.
- The company bought 268,928 Coinbase shares via its exchange-traded funds ARKK Innovation and ARKW Future Generation Internet.
- The deals were worth $17.8 million at the end of the session.
ARK Invest, the investment management company established by Cathie Wood, has purchased almost $18 million in Coinbase stock despite market turbulence.
As the SEC issued a Wells notice to Coinbase, threatening enforcement action, ARK Invest saw a chance to profit on the drop, acquiring 268,928 shares for a stunning $17.7 million.
Merely two days before the Wells notice, ARK Invest sold 160,887 Coinbase shares for $13.5 million via its ARK Fintech Innovation ETF at a price of roughly $83 per share. In 2023, this was the first time any of ARK Invest’s ETFs sold Coinbase shares.
Coinbase has had its share of problems this week, with its stock dropping after the US Securities and Exchange Commission issued a Warning notice over its staking business, Coinbase Earn, and Coinbase Wallet.
The company’s share price has not recovered since it disclosed that it had received a Wells notice from the Securities and Exchange Commission, which resulted in a 20% decline in COIN shares.
The exchange has until March 29 to reply to the action and determine whether or not to dispute it. The SEC has revealed preparations to prosecute Justin Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry for selling unregistered securities and market manipulation via wash trading.
Brian Armstrong, the CEO of Coinbase, recently said on Twitter that the business would get more politically active and encourage its US-based customers to vote for pro-crypto politicians.
As Coincu reported, although the SEC secured a settlement with crypto exchange Kraken after asserting that its staking services qualified as securities, Coinbase has frequently said that its staking products are fundamentally different from Kraken’s and cannot be characterized as securities generically.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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