ARK Invest Management, led by the famous investor and institutional Bitcoin/cryptocurrency whale Cathie Wood, attracted attention with its new purchase. He has demonstrated his confidence in Coinbase despite the recent lawsuit filed by the US Securities and Exchange Commission (SEC) against the crypto exchange. ARK, the second largest holder of Coinbase shares, has doubled its investment in the company by purchasing 419,324 more shares. Here are the details…
Cryptocurrency whale’s purchases drew attention
The most recent purchase by ARK, worth approximately $21.6 million, compared to Coinbase’s closing price of $51.61 on Tuesday. These shares were split between ARK’s three ETFs. These are as follows: Innovation ETF (ARKK), Next Generation Internet ETF (ARKW) and Fintech Innovation ETF (ARKF). This acquisition marks the first time ARK has purchased Coinbase shares since May 3. Moreover, it increases its total assets in the company to 11.44 million shares, valuing the position at approximately $590 million.
As we reported on Kriptokoin.com, the SEC’s lawsuit against Coinbase alleges violations of federal securities law. It accuses the exchange of simultaneously acting as a broker, exchange and trading institution without proper registration. The legal action comes just a day after the SEC filed a similar lawsuit against Binance, another big player in the crypto industry. News of the lawsuit caused Coinbase’s shares to drop more than 12 percent at the end of US trading hours on Tuesday.
ARK on the rise for Coinbase
Despite the negative impact on Coinbase’s share price, the company has experienced significant growth this year. The stock is up over 50 percent from the start of the year to date. This echoes ARK’s long-term bullish view of the potential of Coinbase and the cryptocurrency market as a whole. This may have contributed to the decision to increase their holdings in the stock market. Known for her successful bets on disruptive technologies and forward-thinking investments, Cathie Wood has become one of the leading names in the investment world. It’s important that ARK continues to support Coinbase amid legal challenges. It highlights Wood’s confidence in the long-term prospects of the crypto exchange and the potential of the industry.
It is not yet clear how the legal action against Coinbase will develop and what impact it will have on the company’s operations. As the SEC’s scrutiny of the crypto market intensifies, investors and industry participants are keeping a close eye on developments. It seeks to gain insight into the regulatory environment and its implications for the future of digital assets. Despite recent volatility and legal challenges, cryptocurrencies and their underlying Blockchain technology continue to attract attention and investment. He underlines that as institutional investors like ARK maintain their positions and actively add to their holdings, crypto assets are increasingly recognized and recognized as a legitimate investment class.
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