ARK Invest reduces positions in Coinbase shares by $26.3 million


ARK Invest-managed funds liquidated $26.3 million in Coinbase shares, the third sale in seven days.

The structures did the following:

  • flagship ETF fund ARK Innovation sold 127,266 shares;
  • ETF ARK Next Generation – 44,784 shares;
  • ARK Fintech Innovation ETF – 76,788 shares.

The catalyst for transactions could be a further increase in the capitalization of the bitcoin exchange due to a reassessment of its prospects after the verdict in the process. SEC against Ripple.

On June 13, the Southern District of New York court ruled that program sales and other distributions of the XRP token do not constitute the offer and implementation of investment contracts. The case has been pending since December 2020.

The company’s CEO, Kathy Wood, explained the move as “simply taking profits and redeploying capital into underperforming stocks. She assured of maintaining a positive attitude towards Coinbase in light of the recent news around Ripple.

An additional factor in the positive dynamics could be news around applications for the launch of spot bitcoin ETFs.

On June 30, WSJ sources reported that the SEC returned the documents because they did not contain sufficient information regarding the so-called joint surveillance agreement or the details of this mechanism. The latter has become a key addition to the BlackRock offering.

The following day, Bloomberg reported that Invesco, VanEck, 21Shares, WisdomTree and Fidelity had submitted revised filings to the Commission in response to criticism of the regulator.

The listed companies included in the proposals a mention that they will be supported by the Coinbase exchange in joint supervision.

On July 17, Coinbase stock ended trading at $105.55. In the previous session, quotes rose to $114.43. Since the beginning of the year, the growth of platform capitalization has reached 198.25%.

On July 11, ARK Invest funds disposed of 135,152 Coinbase securities (~$13.4 million), and on July 14 another 392,140 securities (~$53 million).

According to JPMorgan, the verdict could affect 13 tokens actively traded on the platform, which the SEC called securities in a lawsuit against the company.

Recall that Coinbase announced the relisting of XRP. The exchange stopped trading the asset in December 2020 immediately after the SEC filed a lawsuit against Ripple.

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