3 - 5 minute read
ARK Invest, the investment management firm founded by the legendary investor Cathie Wood, has made a move to invest in Coinbase, the cryptocurrency exchange. The company purchased 168,869 Coinbase stocks worth $8.5 million, which accounts for nearly 50% of the total Coinbase shares bought by ARK last month. Despite the recent drop in Coinbase shares by more than 20%, ARK has continued to invest in the company.
According to an investor notification seen by Cointelegraph, ARK purchased 129,604 Coinbase shares for its ARK Innovation exchange-traded fund, 23,456 COIN stocks for the ARK Next Generation Internet ETF, and 15,809 Coinbase shares for the Fintech Innovation ETF. ARK Invest has been a long-term investor in Coinbase, having bought 2.4 million COIN shares in March for about $117 million.
The recent investment by ARK Invest in Coinbase comes amid the exchange facing a new class-action lawsuit alleging that the exchange violated privacy laws. The COIN stock price has dropped from a high of nearly $72 in April to $50.1 on Monday, according to data from TradingView. The sharp decline in the COIN stock price came amid the ongoing action against Coinbase by the United States Securities and Exchange Commission (SEC).
On March 22, the SEC sent Coinbase a Wells notice suggesting enforcement action against the exchange. In response, Coinbase filed an action against the SEC on April 25, asking the regulator to answer 50 questions concerning the regulatory treatment of certain digital assets. The ongoing action against Coinbase by the SEC has led to a drop in the company’s share price.
Despite the ongoing action against Coinbase by the SEC and the drop in the company’s share price, ARK Invest’s move to invest in the company indicates a bullish outlook for the future prospects of Coinbase. According to a report by Cointelegraph, ARK Invest sees Coinbase as a major player in the cryptocurrency industry with a strong user base and potential for growth in the future.
The Bottom Line
ARK Invest’s investment in Coinbase indicates a bullish outlook for the future prospects of the cryptocurrency exchange. Despite the ongoing action against Coinbase by the SEC and the drop in the company’s share price, ARK Invest sees Coinbase as a major player in the cryptocurrency industry with a strong user base and potential for growth in the future. Traders should keep an eye on Coinbase’s share price and the ongoing action against the company by the SEC to make informed trading decisions.
