Fund manager Cathie Wood and her ARK Invest Management firm loaded up on Coinbase (COIN) as the crypto exchange stock tumbled Tuesday after the Securities and Exchange Commission filed charges.
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Cathie Wood Buys The Dip On COIN
Wood and ARK purchased a total of 419,324 COIN shares on Tuesday, worth $21.64 million based on the 51.61 closing price, according to ARK Invest’s daily trade update. Wood added 329,773 shares to the ARK Innovation ETF (ARKK), 53,885 shares to the ARK Next Generation Internet ETF (ARKW) and 35,666 COIN shares to the ARK Fintech Innovation ETF (ARKF), respectively.
Coinbase stock dove 12% Tuesday after the SEC filed suit against the company for operating as an unregistered exchange. The SEC lawsuit came one day after filing 13 charges against Binance, the world’s top crypto exchange.
It’s not the first time this year that Wood bought COIN stock on the dip. ARK Invest acquired $17.83 million worth of shares in late March after Coinbase received a Wells Notice from the regulator, a warning the SEC intended to recommend enforcement action for potential securities violations. Wood consistently added Coinbase stock throughout the year and made another $16 million purchase ahead of its earnings results in early May.
SEC Receives Court Orders
Following the lodging of the official complaint, the Third Circuit for the U.S. Court of Appeals gave the SEC a week to respond to Coinbase’s petition for rule making, according to a Tuesday night order. Coinbase submitted the petition for rule making in June 2022, seeking clarification on SEC definitions and guidelines. It followed up in April, filing a lawsuit against the SEC in an attempt to force a formal decision.
The Third Circuit ordered the SEC to address whether it decided to deny the petition for rule making, which would allow the crypto industry to be regulated under existing frameworks. The order asked for an official timeline from the SEC if a decision hasn’t been made. And the court requested reasoning for why the Third Circuit should not retain jurisdiction and create a deadline for…
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