crypto news man show trading charts people talk office background dark tones sixties retro futuristic

Amid the SEC’s allegations of Coinbase operating an illegal exchange, Cathie Wood’s managed funds have increased their stake in the company’s stock.

Coinbase shares experienced a significant 21% decline on June 6 amid the SEC complaint. However, Ark Investment acquired 419,324 shares, according to Bloomberg data.

Despite Sam Bankman-Fried’s empire’s challenges, a broadening regulatory crackdown in the United States, and a series of bankruptcies within the industry, Ark Investment Management remains the fourth-largest holder of Coinbase stock. The firm has been steadily increasing its stake in Coinbase, strategically capitalizing on market dips for almost a year.

On June 6, the SEC asserted that Coinbase had violated its regulations over several years by facilitating the trading of specific crypto tokens that were, in fact, unregistered securities. In response, the exchange operator expressed readiness to take the case to the Supreme Court.

The crackdown on Coinbase has expanded as state authorities, ranging from California to New Jersey, demand that the exchange cease its staking service, compensating clients for allowing their tokens to be used in blockchain transactions.

While Wood’s flagship fund, Ark Innovation ETF, has achieved a 37% gain this year, surpassing the Nasdaq 100 Index (up 33%) and the S&P 500 (up 12%), it experienced a significant decline of 67% last year.

As of March 31, Wood’s company held over 11.7 million Coinbase shares, equivalent to 6.3% of the total shares outstanding. Wood has previously expressed her expectation that bitcoin, the largest cryptocurrency, will reach $1 million, despite its current trading price of approximately $27,000.

Follow Us on Google News

Leave a Reply

Your email address will not be published. Required fields are marked *