Funds managed by ARK Invest purchased a total of 419,324 shares of the Coinbase bitcoin exchange for $21.64 million.
The structures of Kathy Wood’s firm distributed the transactions as follows:
- flagship fund ETF ARK Innovation – 329,773 shares;
- ETF ARK Next Generation – 53,885 securities;
- TF ARK Fintech Innovation – 35,666 shares.
In total, the structures own securities of the platform for $647 million. The average purchase price varies in the range of $243-254.
Managers took advantage of the deteriorating market conditions. The platform’s shares opened at their lows since May, down 21%, cutting losses to 12.1% ($51.61) by the end of the session.
In the last two days after filing a claim SEC Coinbase capitalization has fallen by 20%. Approximately the same amount of losses in the last year.
In the lawsuit, the Commission accused Coinbase of violating securities laws. According to the agency, a number of tokens on the exchange fit this definition: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO. He followed suit against Binance.
The SEC said that Coinbase illegally combines three functions – as a broker, exchange and clearing agency – that are usually separated in traditional markets. The regulator also targeted the Coinbase Earn staking program.
On April 25, the exchange filed a lawsuit to seek a response from the Commission on the July 2022 petition. In it, the company demanded to clarify the regulation of the crypto industry.
The SEC called the firm’s claims “unfounded.” Officials indicated that the department is not required to issue new rules, and the company “does not have the right to sue the regulator.”
On May 22, Coinbase filed a new complaint with the SEC in order to get a response from the regulator to the July appeal.
The US Chamber of Commerce later came out in support of Coinbase and accused the regulator of “deliberately creating a dangerous and uncertain environment” for crypto companies in the country.
On June 6, the platform’s chief legal officer, Paul Grewal, said the SEC’s regulatory approaches were hurting US competitiveness.
Earlier in 2023, the SEC pointed to violations in the operation of Bittrex, Coinbase, Kraken, Gemini and Genesis. The CFTC has filed a lawsuit against Binance and its CEO Changpeng Zhao.
Recall that ARK Invest resumed buying Coinbase shares in October 2022 after a pause of four months. The company has consistently increased its positions in securities and only in March 2023 got rid of the package for $13.5 million.
At the end of April, Kathy Wood funds bought $8.6 million worth of trading platform securities. The transaction occurred on the same day that Coinbase filed a legal complaint against the SEC.
In May, structures controlled by ARK Invest invested $8.3 million and $7.5 million in the crypto exchange.
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