Cathie Wood’s ARK Bought $22M Worth of Coinbase Shares After the Price Tanked

Cathie Woods’ tech-focused funding agency ARK Make investments expanded its holdings of Coinbase shares after the inventory took a blow. The rationale: A large lawsuit filed by the Securities and Change Fee.

Ark bought 419,324 shares value roughly $21.6 million at Tuesday’s closing value of $51.61 by way of its three exchange-traded funds: ARK’s Innovation ETF, Subsequent Era ETF, and Fintech Innovation ETF. In complete, Ark now holds about 11,776,015 shares, making it the second largest proprietor of Coinbase shares after Vanguard Group.

This isn’t be the primary time that Wooden has scooped up Coinbase shares amid its long-running feud with the SEC. In March, Wooden’s funds purchased practically $18 million value of Coinbase shares after it obtained a Wells Discover from the SEC, a precursor to the lawsuit filed on Tuesday.

Coinbase’s struggles with the SEC have, in some methods, run parallel to Wooden’s personal interactions with the regulator.

In March, Wooden filed a 3rd software with the SEC to launch a Bitcoin spot ETF after two earlier makes an attempt have been rejected. Up to now, the SEC has permitted 4 Bitcoin futures ETFs that provide shares to traders with out involving direct possession of Bitcoin itself, however none for the spot market.

Coinbase’s inventory took a beating on Tuesday after the SEC launched its lawsuit, accusing the corporate of working an unregistered trade and for providing unregistered securities. After the SEC’s motion, Coinbase’s inventory on Nasdaq fell by greater than 21% to $45.98. On the time of writing, COIN’s shares are being traded at $53.38.

Coinbase has accused the SEC of failing to concern steerage on the right way to function with out working afoul of its regulatory oversight.

In April, Coinbase requested a federal courtroom to drive the SEC to concern clearer crypto steerage and beforehand despatched the SEC its so-called “petition for rulemaking” final summer time, however no response was supplied. After the SEC sued Coinbase, a federal choose ordered the company to reply to Coinbase’s request inside the subsequent seven days.

The SEC’s lawsuit follows one filed towards Binance, t​​he world’s largest cryptocurrency trade, on allegations of violating securities legal guidelines that embody failing to register as an trade and fascinating in unregistered crypto transactions. Binance can be accused of commingling buyer funds. The corporate has denied the fees and accused the SEC of overreach.