Ark Investment CEO Cathie Wood said a dubious investigation of SEC influenced the company's decision to sell shares.
Earlier this week, the CEO of the hedge fund Ark Investment, Cathie Wood, confirmed to the newspaper Bloomberg that the Securities and Exchange Commission (SEC) “flagged” 9 tokens traded on Coinbase are unregistered securities, led the company to sell a portion of the COIN shares it holds in its portfolio.
Cathie Wood said Ark Investment Management's sale of some of its Coinbase holdings last month came after what the firm viewed as regulatory “uncertainty” in the cryptocurrency world https://t.co/oci9Z70PTd— Bloomberg Crypto (@crypto) August 9, 2022
Cathie Wood shared that as soon as the SEC released the statement, the fund felt shaken by the level of “uncertainty” about regulation from the regulator for the industry. cryptocurrency. Therefore, on July 26, Ark Investment decided to "cut loss" more than 1.4 million COIN shares worth $75 million at an average price of about $53 per share.
Wow. @ARKInvest sold 1.4M shares of $COIN today, representing over 5% of today's total trading volume. $COIN was down 21% on news of an SEC probe, and I'm sure this sell pressure accelerated that slide quite a bit. pic.twitter.com/LW71XJt5jP— Matt Smith (@MatchasmMatt) July 27, 2022
Interestingly, Ark Investment's "stop loss" is quite severe because the fund has had a history of buying COIN shares "massively" since COIN was listed on the Nasdaq stock exchange in April 2021. .
On the other hand, the purchase price of Ark Investment at 330 USD is the level at which the CEO and investor Coinbase sold out $4.5 billion in COIN shares in the first week COIN was traded. In addition, the selling price of Ark Investment ($53/share) is close to the co-founder's price Coinbase Fred Ehrsam "bottomed" 75 million USD COIN in May 2022.
According to the website, Ark Investment still holds over $451 million in COIN shares as of press time. As of the end of June 2022, Ark Investment was Coinbase's third largest shareholder, holding 8.95 million shares.
More surprisingly, since the company sold with its shares in Coinbase, the COIN stock price has grown rapidly to 84% soon after. Much of the impetus comes from news that Coinbase has signed an agreement with the world's largest asset manager Blackrock to provide trading technology. cryptocurrency for institutional investors on the Aladdin platform.
In fact, even though Coinbase has seen a sharp increase in COIN share price following its partnership with BlackRock, overall COINs are still down 61% from the start of this year, when they were priced at around 251 USD/share.