ARK Invest Buys $18M Worth of Coinbase Shares As The Price Tumbles
In a recent development, Cathie Woods Ark Invest purchased 268,928 Coinbase (COIN) shares following the Wells notice from SEC.
The report revealed that the investment firm had sold 160,887 Coinbase shares from its Fintech Innovation ETF, making it the first since the year began. This recent move shows that the firm aims at buying the dip as the share prices fell following the Wells notice.
Ark Invest Sells and Acquire More COIN Shares
The investment firm sold its ARK Fintech Innovation ETF on March 21, realizing $13.5 million. Before the sale, Ark Invest bought 301,437 shares for its ARK Innovation ETF ARKK on March 9. It also bought 52,255 shares for its ARK Next Generation Internet ETF (ARKW) the same day.
Related Reading: 3 Reasons To Remain Bullish On Bitcoin In Coming Months
The firm spent a whopping $20.5 million to buy the shares, but by March 22, the value had spiked close to $30 million. This difference in value may have informed its first sale of 160,887 shares from the ARKF ETF for $13.5 million.
Then the next day, Ark Invest amassed another 268,928 Coinbase shares worth $17.88 million through ARKK and ARKW ETFs.
But apart from Cathie Wood’s firm, Coinbase CEO and others also sold shares between March 17 and March 20 before the Wells notice on March 22.
Coinbase Shares Price Dips Following Well’s Notice
Coinbase received a Wells notice from the US Securities and Exchange Commission staff on March 22. The notice means that the SEC staff has recommended enforcement action against Coinbase for violating federal securities law.
1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
— Brian Armstrong (@brian_armstrong) March 22, 2023
While responding to the Wells notice, Coinbase Armstrong tweeted that the crypto firm is right on the law. He further disclosed that the SEC had reviewed the firm’s business in 2021, allowing it to go public which occurred on April 14, 2021.
In the tweets, Armstrong stated that Coinbase Form S1 explained its asset listing process and added 57 references to staking. He also mentioned that the firm is confident in the facts and is ready to stand before an unbiased body to defend its customers and the crypto industry as a whole.
Further, Coinbase’s CEO revealed that SEC has not been serious, fair, and reasonable towards its digital assets engagements.
Further, he assured the community of Coinbase’s dedication to building the most trusted services and products to update the financial system and create worldwide economic freedom.
However, after the Wells notice, Coinbase shares plummeted. COIN price dropped by 21% as the fear of enforcement action spread amongst investors. The next day March 23, the price fell to $64.27. At the time of writing, COIN’s price is $67.83, a slight dip from earlier today.
Featured image from Bankrate and chart from Tradingview