The company’s third largest shareholder sold more than 1.41 million shares to the U.S. largest cryptocurrency exchange, a total of almost $75 million. Ark Invest, Cathie Wood’s investment firm, sold more than 1.4 Million shares of Cryptobase Global (COIN), on Tuesday according to the daily trade information newsletter.
The sale was spread across three actively managed exchange-traded funds of the company: Ark Innovation ( ARKK), Next Generation Internet( ARKW), Fintech Innovation ( ARKF), with ARKK securing as many as 1,133.495 COIN shares.
Coinbase stock closed Tuesday at $52.93. This means Ark Invest sold approximately $75 million of shares in the San Francisco company.
According to , Ark Invest was Coinbase’s third largest shareholder. It held 8.95 million shares as of June. Since April 2021 when the cryptocurrency exchange was launched on Nasdaq, the firm has been purchasing Coinbase stock. The most recent major purchase worth more than half a milliliter shares and $30 million in value took place in May.
ARKK, the flagship ETF of the firm, was a huge winner after strong stock market gains in 2020. However, it plunged 57.84% from the beginning of the year amid concerns that monetary tightenings around the world may severely limit wider growth in stocks.
This is the first of its kind this year. It follows reports by the U.S Securities and Exchange Commission (SEC). The SEC is looking into Coinbase’s ability to allow Americans to trade tokens that could have been registered as securities.
The Insider Trading Case was launched last week by the SEC. It involved a case in which a former employee of Coinbase was accused of violating company’s insider trading rules. He tipped off others about the future token listings.
Coinbase strongly denied the allegations. Paul Grewal, the chief legal officer of the company, stated that the exchange’s rigorous diligence process – which the SEC already reviewed – keeps securities off our platform.
Coinbase also filed a petition last week with the SEC in an effort to improve “rulemaking regarding digital asset securities.”
