Cathie Wood's Ark Invest Offloads Over 1.4M Coinbase Shares as COIN Price Falls

Coinbase shares have taken a big hit following disappointing results and a report the exchange is being investigated by the U.S. Securities and Exchange Commission.

By Greg Ahlstrand

Jul 27, 2022 at 6:55 a.m. UTC

Updated Jul 27, 2022 at 7:33 p.m. UTC

Greg Ahlstrand

Greg Ahlstrand is CoinDesk's Asia News Editor. Greg has no significant crypto holdings.

Follow @GregAhl on Twitter

Three funds of Cathie Wood’s Ark Investment Management sold a total of more than 1.4 million shares of Coinbase Global (COIN) on Tuesday, the crypto exchange said in its daily trading update email on Wednesday.

The move comes almost three months after Ark bought more than half a million shares in May.
On Tuesday, Coinbase shares closed down 21.08% at $52.93. Based on Tuesday's closing price, the value of the offloaded shares would be over $75 milllion. Coinbase shares were trading 5.72% higher at $55.96 during after-hours trading.
ARK Innovation Exchange-Traded Fund (ETF), or AARK, sold 1,133,495 COIN shares, or 0.6833% of the fund's of the fund's total investments.
ARK Next Generation Internet ETF, or ARKW, sold 174,611, shares, or 0.6768% of the fund's total investments.
ARK Fintech Innovation ETF, or ARKF, sold 110,218 shares, or 0.6793% of its total fund investments.

The plunge in the cryptocurrency market has seen Coinbase digital shares fall from a high of over $400 on its first day of trading in 2021 to as low as $40.30 at one point as user transactions declined.
Also having a possible effect was a report the U.S. Securities and Exchange Commission is investigating the exchange for allowing Americans to trade in tokens that should have been registered as securities. Coinbase told CoinDesk it looks forward to "engaging with the SEC on the matter."

UPDATE (July 27, 09:41 UTC): Adds the value of the shares sold in second bullet, updates after-hours movement.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.