Cathie Wood, the CEO of Ark Invest, highlighted that the firm sold a portion of Coinbase shares after the Securities and Exchange Commission (SEC) labeled nine tokens traded on the crypto exchange as unregistered securities. She said the agency’s claim sparked a degree of regulatory uncertainty for the crypto industry.
Ark Investment sold over 1.4 million shares in Coinbase, on July 26, worth $75 million. It still holds over $451 million worth of shares. The company has been buying Coinbase stock ever since it debuted on the Nasdaq in April 2021. Ark Investment became the third-largest shareholder of Coinbase by the end of June – it held 8.95 million shares.
Wood explained that she took the decision because the price of shares in Shopify had fallen and it looked like a favorable alternative amid confusion about Coinbase and regulators. In making the decision, she questioned how many tokens Coinbase would have to delist from its platform if it decided not to register them. The investor also pondered how the company’s business model could be impacted if it did. Wood pointed out that charges the SEC levied against individuals for allegedly running an insider trading scheme did not influence Ark Investment’s decision to sell shares in the crypto exchange.
It should be noted that a former Coinbase product manager, who had prior knowledge of tokens that would be newly listed on the exchange, has been charged. Ark Invest’s selling of shares has not affected Coinbase. In fact, its stock price increased by 84% from $52.93 on July 26 to $97.67. Furthermore, Coinbase stock rallied on a deal with Blackrock.