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Cathie Wood’s ARK Investment used Tuesday’s regulatory-fueled selloff in Coinbase Global Inc.’s stock to scoop up more than $21 million worth of the cryptocurrency exchange’s beaten-down shares.
Don’t miss: Coinbase’s stock sinks again as penalties from SEC suit could top $6 billion, analyst says
The flagship Ark Innovation ETF
ARKK,
added 329,773 shares of Coinbase
COIN,
Tuesday, which were worth $17.0 million as of the close. Coinbase now represents 0.21% of that fund, according to daily trade disclosures shared to Ark’s website.
The Ark Next Generation Internet ETF
ARKW,
added 53,885 shares of Coinbase, worth $2.8 million based on Tuesday’s closing levels. The Ark Fintech Innovation ETF
ARKF,
added 35,666 shares, worth $1.8 million. Coinbase represents about 0.21% of the Next Generation Internet ETF and 0.20% of the Fintech ETF.
See also: Cathie Wood’s ARK loads up further on Palantir stock
ARK’s purchases came as Coinbase shares posted their second session in a row of meaningful declines Tuesday amid regulatory pushback against cryptocurrency players. Tuesday brought news that the Securities and Exchange Commission was charging Coinbase with operating an unregistered national securities exchange and running its crypto-staking service without proper registration.
Opinion: Coinbase and Binance crackdown hurts the U.S. more than it does bitcoin and other crypto
While Ark’s move suggests that Wood and others at the investment entity see Coinbase’s 20% plunge over the prior two trading days as overdone, others seemed more cautious.
The suit from the SEC “appears quite broad-based in nature and goes at the heart of what Coinbase is and does (trading, prime brokerage, wallet, staking),” Bernstein analyst Harshita Rawat wrote Tuesday, noting that she expects Coinbase to fight the charges.
“A likely prolonged (and expensive) legal limbo, challenges in crypto banking (after failures of Silvergate, Signature, SVB) along with potentially waning retail trading interest makes COIN stock setup increasingly challenging,” she continued.
