Investment veteran Cathie Wood sells $12 m in Coinbase with prices surpassing $90. Her Ark Investment Management sold over a million shares. Coinnbase shares suffered a hit after disappointing results. There have also been reports that the exchange is under scrutiny by the US Securities and Exchange Commission.
On Tuesday, three funds of Cathie Wood’s Ark Investment Management dumped a total of over 1.4 million shares of Coinbase Global (COIN). This was revealed by the crypto exchange in its daily trading update mail the next day. This move by Cathie Wood comes within 3 months of her investment firm picking up substantial shares. Ark both over 0.5 million shares of Coinbase in May this year.
On the heels of the dumping of shares by Cathie Wood’s firm, Coinbase shares slid down 21.08% and ended at $52.93. At Tuesday’s closing price, the value of the dumped shares that Cathie Wood offloaded comes to around $75 million. The exchange’s shares again rose 5.72% during after-hours trading and reached $55.96.
ARK Innovation ETF, also known as AARK, offloaded 1,133,495 shares of COIN. it is around 0.68% of the total investment by the fund. Cathie Wood’s other firm, ARK Next Generation Internet ETF (ARKW), offloaded 174,611 shares. It is 0.68$ of the total investment by the fund.
Cathie Wood’s third firm, ARK Fintech Innovation ETF, (ARKF), offloaded 110,218 shares, which is 0.68% of the firm’s total investment. Coinbase digital shares plunged from its peak of $400 on the first day of trading in 2021 and slid to $40.30 at a stage as it faced a decline in user transactions.
A report from the US SEC, that it was investigating the exchange for allowing trade through tokens instead of being registered as securities, also contributed to the slide. Coinbase stated that it was ready to engage with the Commission on the issue.