Cathie Wood Bets Big On Coinbase With Whopping $8M Investment, Despite SEC Troubles

Cathie Wood-led ARK Investment Management bought over 168,000 shares of cryptocurrency exchange platform Coinbase Global Inc (NASDAQ:COIN) at an estimated valuation of over $8.4 million based on Monday's closing price.

What Happened: The purchase was done via the flagship ARK Innovation ETF (NYSE:ARKK), the ARK Next Generation Internet ETF (NYSE:ARKW) and the ARK Fintech Innovation ETF (NYSE:ARKF). The stake hike comes on a day when the stock lost over 6%. Shares of the company are down over 21% in the last one month.

Also Read: How To Buy Coinbase (COIN) Stock

The Securities and Exchange Commission's Wells Notice, which identified potential securities law violations by Coinbase, has heightened tensions between the two parties.

Last week, Coinbase had reiterated its view to the SEC it has not broken any securities laws in its formal response to a legal threat received from the regulator. In a detailed response to the SEC’s March Wells Notice, which indicated the regulatory agency’s intention to initiate an enforcement action, Coinbase warned that it would be “a well-resourced adversary that will necessarily be motivated to exhaust all avenues.”

On Monday, the firm put out a survey of institutional investors that showed both current and potential crypto investors firmly believe that the U.S. lacks clear rules on digital assets.

Coinbase said that 78% of institutional investors surveyed want clarity from regulators about how digital assets are classified or treated while 90% of respondents plan to maintain or increase their current levels of digital asset exposure in the next year.

Major Sale: ARK sold over 303,000 shares of DraftKings Inc (NASDAQ:DKNG) on Monday at an estimated valuation of over $6.8 million.

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