The latest purchase brings Ark’s total holdings in Coinbase to approximately $67 million, representing 7.43% of the fund’s value.
Ark Invest, the investment management firm led by Cathie Wood, purchased a total of $2.2 million worth of Coinbase (COIN) shares, marking it the first purchase in nearly a month’s time since September 11.
On Tuesday, October 8, Ark Invest purchased a total of 12,994 COIN shares through its Fintech Innovation ETF (ARKF). With this purchase, the asset manager now holds $67 million worth of COIN stock, which represents 7.43% weightage in the total fund’s value. As of Tuesday’s closing, the Coinbase (COIN) share price is trading at 167.69.
Ever since the last purchase of COIN shares last month on September 11, the stock has gained 6.5%. However, it is still available at a 20% discount from the month of August. ARK may be preparing for a potential rally in the COIN stock, driven by a typical October surge in Bitcoin’s BTC $95 278 24h volatility: 0.1% Market cap: $1.90 T Vol. 24h: $34.43 B price.
In another recent development, Ark Invest also offloaded a massive 135,665 shares of Robinhood (HOOD), valued at a staggering $3.5 million. This recent sell-off comes as part of complying with an SEC regulation that prohibits funds from holding over 5% exposure to companies earning over 15% of their revenue from the sale of the securities. HOOD shares climbed nearly 10% on Tuesday, closing at $25.61.
Ark Invest often shuffles its holdings periodically as part of its portfolio rebalancing measures. In the past, it sold a large number of COIN shares when it was trading at around $280 in 2023.
Coinbase vs SEC Legal Battle Continues
This year, the COIN stock has been largely underperforming despite a strong surge in Bitcoin price and other altcoins. Furthermore, it has underperformed other market payers like MicroStrategy. One of the major reasons behind this is the ongoing legal battle between Coinbase and the US SEC.
Coinbase Global Inc. is continuing its legal battle against the SEC’s rejection of its petition for new rulemaking on digital assets. Coinbase is pushing for clear regulations to define when a digital asset qualifies as a security. This action comes amid a notable rise in US-listed cryptocurrency stocks, fueled by the Federal Reserve’s decision to lower interest rates.
In the overseas market, Coinbase has also been undertaking necessary measures to comply with the local jurisdictions. Last week, Coinbase announced that it would delist all non-compliant stablecoins by December this year in Europe, in order to comply with the MiCA rules.
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