In a recent interview with Bloomberg, the CEO, and CIO of ARK Invest, Cathie Wood, recently talked about why her flagship fund, Ark Innovation, had been adding to its position Coinbase shares after the SEC Had sued Binance- one of the biggest competitors of Coinbase.
ARKK managed to purchase around 330,000 shares of COIN on the 6th of June 2023, which had a worth of $17 million, as mentioned by many disclosure statements. There were two other exchange-traded funds, ARK Fintech Innovation ETF, and the Ark Next Generation Internet ETF, which also managed to add around 35,700 shares and 53,900 shares respectively. Across all three funds, the average entry price of ARK is $272.75 to $282.93, with the total position of the firm currently valued at around $1.77 billion.
Cathie Wood Has A Lot Of Expectations From Coinbase
As far as why Cathie Wood is still so bullish, her reasoning has been that the SEC enforcement would automatically lead Coinbase to turn up as the only game in town when it came to cryptocurrency exchanges in the country. Of course, it has also been assumed that Coinbase will be triumphing in its own legal battles with the SEC. Wood managed to explain that she saw a massive difference in the accusations that had been brought against the two separate exchanges. While both were facing multiple lawsuits by the SEC over the alleged staking and trading of unregistered securities, Binance could be facing more serious charges.
It is quite hard to understand whether Cathie Wood’s conviction regarding COIN can be construed as well-justified. Although some of the analysts do share her view, there are others who absolutely don’t.