coinspress.com
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.