Ark Invest Dumped $75 Million On The Coinbase Stock: Report

Ark Invest dumped $75 million on the Coinbase stock, selling over 1.4 million of the shares as the third biggest shareholder in the US market so let’s read more today in our latest Coinbase news.

The investment fund led by Cathie Wood, Ark Invest dumped $75 million or 1.4 million shares of Coinbase Global according to the company’s daily trade information newsletter. The sale is spread out across the company’s managed exchange-traded funds, such as Next Generation Internet, Fintech Innovation, and Ark Innovation. Coinbase stock closed Tuesday down 21.08% which means that the company disposed of $75 million worth of shares in San Francisco-based company.

Ark Invest was Coinbase’s third-biggest shareholder and held about 8.95 million shares at the end of June so the company started buying Coinbase stock since the exchange debuted on the NASDAQ in 2021 with the latest major purchase of more than half a million shares worth $30 million. ARKK, the company’s flagship ETF was a big winner after the stock market gains in 2020 but it dropped 57.84% since the start of the year amid the fears that the monetary tightening worldwide might dampen the broader growth in stock.

The move came after the aftermath of the reports that the US SEC investigated Coinbase for allowing Americans to trade in tokens that might have been registered as Securities. A new possible investigation related to the insider trading case that was launched by the SEC a week ago when the agency said one of the former employees of Coinbase violated the company’s insider trading rules by tipping off his brother and his friend for the platform’s future token listings.

Coinbase denied the allegations with the company’s chief legal officer Paul Grewal said that the exchange’s rigorous diligence process which the SEC reviewed, kept securities off our platform. Coinbase filed a petition with the SEC to improve the rulemaking on digital asset securities.

As earlier reported, The US SEC is probing Coinbase as a publicly-traded company it oversees on suspicious it allowed US customers to trade unregistered securities. Bloomberg noted that the regulator was investigating some of the tokens listed on the exchange but the SEC alleged a week ago that seven cryptocurrencies listed on the platform were securities in the unrelated insider trading case brought against the former product manager of the exchange.