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ARK Invest bets big on Coinbase with $18M purchase during price decline

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Cathie Wood's Ark Invest

Cathie Wood’s Ark Invest recently purchased 268,928 Coinbase shares as the price of the cryptocurrency exchange’s shares tumbled following the Wells notice from the US Securities and Exchange Commission (SEC).

The investment firm sold 160,887 Coinbase shares from its Fintech Innovation ETF before buying more shares through its ARK Innovation ETF and ARK Next Generation Internet ETF.

Ark Invest spent $20.5 million to buy the shares, and by March 22, the value had spiked to close to $30 million. The firm sold 160,887 shares from the ARKF ETF for $13.5 million and acquired another 268,928 Coinbase shares worth $17.88 million through its ARKK and ARKW ETFs the next day.

Coinbase CEO and others also sold shares between March 17 and March 20 before the Wells notice on March 22. The Wells notice means that the SEC staff has recommended enforcement action against Coinbase for violating federal securities law. As a result, Coinbase shares price has dipped.

Ark Invest’s move to buy the dip in Coinbase shares following the Wells notice shows the firm’s confidence in the long-term potential of the cryptocurrency exchange despite the current setback.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.