Cathie Wood sells Coinbase shares amid insider trading allegations

Cathie Wood sells Coinbase shares amid insider trading allegations

As regulators probe Coinbase for insider trading, one of the largest stockholders has reportedly sold a large number of shares.

Ark Investment Management, Cathie Wood’s investment company, has sold more than 1.4 Million Coinbase (COIN shares), according to Ark daily trade information on July 26.

Three Ark exchange-traded fund (ETF) were involved in the sale, including Ark Innovation ETF(ARKK), which sold 1,133,495 shares or 0.6% of its total assets. Ark Next Generation Internet ETF, Ark Fintech Innovation ETF, and Ark Fintech Innovation ETF each sold 174,611 COIN shares and 110,218 COIN share, respectively. The value of the shares sold was slightly higher than $75 million based on Tuesday’s closing prices.

On Tuesday, Coinbase stock closed at $52.9. This sale caused a 21% drop in its value. Coinbase stock lost 21% of its value after showing signs of recovery in mid-July. The United States arrested an ex-Coinbase Global executive for insider trading on July 21st. According to TradingView data, Coinbase stock has lost 32% since reaching $77.3 on Friday.

Chart of COIN prices for the 30-day period. Source: TradingView

Ark had been steadily increasing its COIN stash in the year. In May, Ark bought 546,579 Coinbase shares despite a decline in Coinbase shares. Since Coinbase’s stock debut last year, the investment company has been buying Coinbase shares and has amassed approximately 750,000 shares by April 2022. Original opening price was $350.

Coinbase: Related: Insolvency of Crypto Firms — Coinbase

Bloomberg reports that Ark, who holds nearly 9 million shares at the end of June, is Coinbase’s third largest shareholder. Ark’s first sale this year of COIN was reportedly the liquidation.

Coinbase faces a U.S. Securities and Exchange Commission probe over its possible involvement in crypto insider trading. Caroline Pham, the SEC commissioner, expressed concern that Coinbase may have allowed Americans to trade digital assets that should be registered as securities.

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