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ARK Invest Buys More Coinbase Shares

ARK Invest Buys More Coinbase Shares

On March 23, ARK Invest, the investment management firm run by Cathie Wood, purchased nearly 269,928 shares in Coinbase via its ARKK Innovation and ARKW Next Generation Internet exchange-traded funds.

This came just a day after Coinbase’s stock price dipped due to the announcement of a Wells notice warning from the Securities and Exchange Commission (SEC). The shares were worth around $17.88 million at the time of purchase.

Coinbase shares struggle аfter Wells notice

Coinbase’s share price has been struggling ever since it shared the news that it had received a Wells notice warning of possible enforcement action from the SEC.

The shares dropped around 21% and dipped to a low of $64.27 after trading began on March 23. At the time of writing, they were trading at $66.87 in after-hours trading.

ARK Invest’s recent sale and purchase of Coinbase shares

Interestingly, only two days before the recent purchase of Coinbase shares, ARK Invest sold 160,887 shares from its ARK Fintech Innovation ETF. This was the first time any of ARK Invest’s ETFs shed Coinbase shares in 2023.

Coinbase CEO Brian Armstrong also sold shares in his firm between March 17 and March 20, just days prior to the Wells notice and share price dip.

However, SEC filings indicate that Coinbase executives and insiders enter into 10B5-1 selling plans months in advance and that this tranche of sales was pursuant to a trading plan adopted on August 16.

READ MORE: Bitcoin’s Outperformance of Gold May Indicate Supercycle, Says Bloomberg Strategist

Coinbase’s assertion about its staking products

In the meantime, Coinbase has repeatedly asserted that its staking products are fundamentally different from Kraken’s, even as the SEC reached a settlement with the crypto exchange on February 9 after alleging that its staking services qualified as securities. Coinbase claimed that its staking products cannot be universally labeled as securities.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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