Opinion

ARK CEO Cathie Wood Reveals More on Pulling Investment Out From Coinbase

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Aug 8, 2022

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Cathie Wood, CEO of Ark Investment Management, revealed that the firm had to sell some of its holdings in Coinbase Global Inc. last month after the SEC had labeled nine tokens being traded on Coinbase as “unregistered securities”.

Wood said that the claim by SEC sparked a degree of regulatory “uncertainty” in the crypto world, as reported by Bloomberg. 

Ark Investment sold slightly over 1.41 million shares of Coinbase for $75 million on July 26. This came after the SEC had listed some tokens on Coinbase as securities. 

Ark Investment has a history of buying Coinbase stock after its debut on the NASDAQ in April 2021. By the end of June, it was the third largest shareholder of Coinbase, holding 8.95 million shares of the exchange, according to a report by Bloomberg. 

Wood said, there was no clarity about the number of tokens Coinbase had to delist if it did not register it with regulators, or possible changes in the business model of the exchange if it registers them. Meanwhile, the price of Shopify shares had also fallen and it was a favorable alternative for Coinbase. 

She clarified that Ark’s decision to sell Coinbase shares was not influenced by Federal prosecutors alleging a former employee of running an insider trading scheme. One of the individuals charged is a former Coinbase product manager who had prior knowledge of tokens that would be newly listed on the exchange. 

The stock price of Coinbase has increased by 80 percent after Ark trimmed its holdings. The stock recently increased following news that Coinbase and asset management Blackrock had agreed to a partnership to offer institutional investors access to bitcoin trading technologies through Blackrock’s Aladdin platform.

Ark Investments still owns about 7.1 million shares of the crypto exchange, making it the third biggest shareholder of the firm, according to Bloomberg. 

Although the value of Coinbase shares has seen an increase recently, the company’s shares are still down by 61 percent since the start of the year, when the worth of one share was approximately $251 on Wall street.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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