ARK Invest sells $75 million worth of Coinbase crypto exchange shares

On July 26, trading closed at $52,9, COIN lost 21% of its value amid a sell-off and SEC investigation

27.07.2022 - 13:30

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What’s new? On July 26, ARK Invest’s funds sold 1,41 million shares of Coinbase (COIN) crypto exchange worth $75 million. COIN trading closed at $52,9, losing 21% of its value amid a sell-off. The market also reacted to an SEC investigation into Coinbase. The regulator suspected the platform of trading in unregistered securities. According to Investing.com, as of July 27, 14:00 UTC, the shares are trading at $55,01, having gained 3,91% per day.

Bloomberg’s material

What else is known about the sell-off? Three of the company’s exchange-traded funds participated in the sale. Ark Innovation sold a total of 1,13 million securities. Next Generation Internet and Fintech Innovation sold 174,6 and 110,2 shares of COIN, respectively.

ARK Invest was the exchange’s third-largest shareholder, owning about 8,95 million shares as of the end of June, according to Bloomberg. It has been buying Coinbase’s shares since its initial public offering (IPO) in 2021.

The company was founded by Cathie Wood in the United States in 2014. Its assets are valued at $60 billion, according to Forbes. The outlet also named ARK Invest one of the fastest growing and most efficient corporations in the world.

Earlier, it became known that from the moment of the IPO to February 2022, Coinbase’s top executives sold $1,2 billion worth of the company’s shares. Among them were the CEO Brian Armstrong, co-founder Fred Ehrsam, and top executives Emilie Choi and Surojit Chatterjee.

On July 21, Coinbase product manager Ishan Wahi was charged with insider trading in cryptocurrencies. This was the first such case in the history of the United States. Together with two accomplices, he was buying coins on the eve of listing on Coinbase for further profitable resale after listing. Under this scheme, the scammers earned $1,5 million on the listings of 25 cryptocurrencies.

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