Cathie Wood’s Ark Invest shows confidence in Coinbase despite SEC lawsuit, acquiring shares worth $21 million. Ark’s funds hold nearly $650 million worth of Coinbase stock, making it their fifth-largest stock holding.
In spite of the United States Securities and Exchange Commission’s lawsuit against Coinbase, Cathie Wood’s Ark Invest continued to demonstrate confidence in the crypto exchange by increasing their holdings on Tuesday. The flagship Ark Innovation ETF purchased 329,773 shares, while the Ark Next Generation Internet ETF acquired 53,885 shares, and the Ark Fintech Innovation ETF obtained 35,666 shares. These purchases amounted to approximately $21.64 million, based on Tuesday’s closing stock price of around $52.
Coinbase’s stock experienced a significant decline, dropping as much as 21% before closing with a 12% decrease following news of the SEC lawsuit. The lawsuit alleged that the exchange had violated regulations by enabling the trading of numerous tokens that were not registered as securities. Coinbase, in response, declared its intention to escalate the legal battle to the Supreme Court.
Despite the downturn, Ark Invest maintains a bullish stance on Coinbase. The crypto exchange’s shares rank as the fifth-largest stock holding across Ark’s funds, with a combined value of nearly $650 million. According to available data, Ark’s average holding cost for Coinbase stock falls between $239 and $255.
Also Check: Coinbase shares lost as much as 12% after word spread that the SEC was suing Binance
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