thenewscrypto.com
- Coinbase Global Inc. shares plunged to over five-month lows.
- In March, ARK Invest bought nearly $18 million worth of Coinbase (COIN) shares.
On June 6, when Coinbase Global Inc. shares plunged to over five-month lows owing to the Securities and Exchange Commission’s crackdown on the crypto sector, Cathie Wood’s Ark Invest increased its investment in the company.
On June 7, the three funds controlled by Cathie Wood had acquired about 400,000 shares in Coinbase on June 6, citing information from Cathie’s Ark, a website that tracks the investment activity of the Ark group.
Over 300,000 shares were bought via her most prominent ETF, the ARK Innovation ETF. After the SEC filed a lawsuit against Coinbase for operating an unlawful exchange and sent stop and desist letters about its staking services, the price of Coinbase’s stock dropped by as much as 20%.
Industry-Wide Crackdown
With the SEC also suing Binance, the world’s largest cryptocurrency exchange, on identical charges, Coinbase shares plunged 9 percent on June 5 and ended 12 percent down the following day, their second session of substantial losses this week. Coinbase stock was up 2% in after-hours trading on the news of the Ark acquisition, however, it is still down 12% at the time of this writing.
Moreover, in March this year, Cathie Wood’s tech-focused investment firm, ARK Invest, bought nearly $18 million worth of Coinbase (COIN) shares shortly after the exchange was threatened with enforcement action from regulators.
The crypto exchange, which has been targeted by the U.S. Securities and Exchange Commission (SEC) for allegedly violating federal securities laws, traded from over $84 to less than $62 at that time.
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