Cathie Wood’s Ark Invest Buys $12.6 Million More Coinbase Shares Despite SEC Warning

On March 27th, Cathie Wood’s Ark Invest purchased another $12.6 million worth of Coinbase (COIN) shares last Friday, which was the second consecutive day that the fund purchased shares on the Cryptocurrency Exchange after receiving a Wells notification from the Securities and Exchange Commission (SEC) on March 22nd. The stock rose 1.5% on Friday to close at $67.83 per share. According to an email sent on Friday night US time, 155833 shares went to ARK Innovation EFT (ARKK) and 26395 shares went to ARK Next Generation Internet EFT (ARKW). （CoinDesk）

Ark Invest increased its holdings of Coinbase stocks by $12.6 million and Block stocks by $18.1 million last Friday

On March 27th, Cathie Wood’s Ark Invest made the news by purchasing another $12.6 million worth of Coinbase (COIN) shares, just a day after receiving a Wells notification from the Securities and Exchange Commission (SEC) on March 22nd. This was the second consecutive day that the fund purchased shares on the Cryptocurrency Exchange, which shows that they are still bullish on the future of Coinbase, despite the regulatory scrutiny surrounding it.

The Significance of Ark Invest’s Purchase

Ark Invest’s purchase of $12.6 million worth of Coinbase shares is significant for several reasons. Firstly, it shows the firm’s confidence in Coinbase’s future potential despite the ongoing regulatory issues. Secondly, it showcases their strategy of investing in disruptive companies that have the potential to transform their respective industries. As an innovation-focussed perspective, Ark invest believes that financial technology can revolutionize the traditional financial industry, and that Coinbase can be a key player in that transformation.

SEC’s Regulatory Warning to Coinbase

On March 22nd, The SEC issued a Wells notice to Coinbase, informing them that it was planning to sue the cryptocurrency exchange over its proposed lending program. The regulator considers the proposed activity as a security offering, which requires disclosures and registration with the SEC. Coinbase firmly denied the SEC’s allegations that it is offering unregistered securities through the program.

Ark Invest’s Vision for Coinbase’s Future

Ark Invest has a long-term vision of Coinbase’s potential to transform the entire financial industry with its innovative and disruptive services. They consider the recent regulatory scrutiny and warning from the SEC to be just mere bumps on the road for the cryptocurrency exchange. The firm is focused on encouraging Coinbase to continue its growth, innovation, and disruption; pushing the boundaries of the traditional financial system with a vision of creating a decentralized and democratized financial system for everyone.

Conclusion

Cathie Wood’s Ark Invest’s $12.6 million purchase of Coinbase shares despite the recent regulatory scrutiny from the SEC is a vote of confidence in the company’s long-term vision and potential. The firm believes that Coinbase is still a disruptive force in the cryptocurrency industry and has the potential to revolutionize traditional finance. The recent regulatory warning serves as a reminder of the challenges and obstacles ahead, but Ark Invest remains committed to investing in innovative companies that can create a better future for all.

FAQs

Q: How did the market respond to Ark Invest’s purchase of Coinbase shares on March 27th?
A: The stock rose 1.5% on Friday to close at $67.83 per share.
Q: What is ARK Innovation EFT and ARK Next Generation Internet EFT?
A: ARK Innovation EFT (ARKK) and ARK Next Generation Internet EFT (ARKW) are two of the Exchange-Traded Funds managed by Cathie Wood’s Ark Invest firm.
Q: What was the reason behind the Wells Notification from the SEC to Coinbase?
A: The SEC considers the proposed lending program by Coinbase as a security offering, which requires disclosures and registration with the SEC. Coinbase denies the allegations.