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Cathie Wood’s ARK Invest continues to buy shares of Coinbase, perhaps taking advantage of COIN’s price drop due to its lawsuit with the SEC.
The latest purchase is for $21.6 million.
ARK Invest: its stake in Coinbase has grown to 11.44 million shares
ARK Invest Management continues to increase its stake in Coinbase.
With its latest purchase of $21.6 million, ARK Invest has reached a total stake of 11.44 million COIN shares.
The US investment management firm founded by Cathie Wood has doubled its investment on Coinbase’s crypto-exchange, even after the US Securities and Exchange Commission (SEC) sued it.
Coinbase is, at the moment, the only publicly traded crypto-trading platform, and the lawsuit with the SEC may have driven down its share price.
Perhaps this is the strategy of ARK Invest, which, aware of the risks, is nonetheless proceeding to accumulate COIN.
Cathie Wood, also known as the investment rock star, says she is a firm supporter of Bitcoin and the crypto sector, following the idea that they are the revolution for several industries.
ARK Invest and the decline in Coinbase’s share price given the lawsuit with the SEC
The current new $21.6 million purchase of Coinbase’s shares by ARK Invest came after a price drop by COIN.
In fact, COIN has dropped 18% over the past five days, with the price now down to $51 from $60.
The reason for this price drop is the lawsuit with the US SEC. In this regard, only yesterday, Coinbase CEO Brian Armstrong suggested that it will be the US Congress that will resolve the conflict situation that has arisen with the SEC.
Armstrong said that the SEC’s complaint against Coinbase, represents to date a case against the entire crypto industry, given the lack of clarity on the rules that need to be applied in this industry.
From here, Armstrong added that the US Congress is introducing new legislation that will finally allow this situation to be resolved.
Crypto companies flee the US because of overly confusing regulation
ARK Invest’s significant investment in Coinbase is meant in some way to represent long-term support for the NASDAQ-listed crypto company.
However, Coinbase is not the only one being targeted by the SEC, and Armstrong’s version comes very close to that of Ripple CEO Brad Garlinghouse, who argues that US regulation is the most confusing.
Ripple is awaiting judgment on its never-ending lawsuit with the SEC that began back in 2020, when the regulator accused the crypto company of offering unregistered securities.
Not only that, Garlinghouse claims that crypto companies are indeed fleeing the United States, to seek support, including legal support, in countries where the situation is more conducive to their own development and expansion.
Among the many, there is the Gemini crypto-exchange, which recently announced its new European headquarters in Ireland, precisely because MiCA is clarifying the regulation of the cryptocurrency industry.