Ark Invest Boosts Coinbase Holdings Amid SEC Lawsuit
Recently, Coinbase, a cryptocurrency exchange, faced legal action from the SEC for allegedly violating U.S. security laws.
The SEC claimed that Coinbase did not register as a broker, national securities exchange, or clearing agency, thus evading regulatory disclosure requirements. Additionally, the SEC considered certain crypto tokens to be unregistered securities.
As a result of this news, Coinbase experienced a significant decline in share value. In pre-market trading, the shares lost approximately 20% of their value, and this negative sentiment continued when the market opened. The day concluded with COIN shares closing 12.09% lower at $51.61 on June 6th.
Despite the legal issues and price drop, Ark Invest, led by Cathie Wood, made substantial purchases of Coinbase shares. Ark Invest acquired shares in batches for three funds: Ark Innovation ETF [ARKK], Ark Next Generation Internet ETF [ARKW], and Ark Fintech Innovation ETF [ARKF].
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Based on the closing price, the total of 419,324 COIN shares purchased on that day was valued at approximately $21.6 million.
This recent purchase increased Ark Invest’s overall holdings of Coinbase shares to over 11 million shares, amounting to a total value of around $570 million. Coinbase now represents the fifth largest position in Ark Invest’s portfolio, accounting for 4.68% of the firm’s total weight. The average cost of the shares in these funds ranges between $239.6 and $254.6.
Ark Invest has also invested significantly in other companies such as Tesla, UiPath, Roku, and Zoom Video Communications.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
