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Cathie Wood’s ARK Invest Dumps Coinbase Shares At Massive Loss

The post Cathie Wood’s ARK Invest Dumps Coinbase Shares At Massive Loss appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

Cathie Wood, the founder of cryptocurrency investment firm ARK Invest, sold a gigantic share of her Coinbase holdings at the lowest price of $53 which she had initially bought for $254.65, according to a report by Unusual Whales. This move came as a gigantic shock to the company and has caused it a significant loss. 

Cathie Wood of $ARKK just sold nearly 1.41 million shares of Coinbase, $COIN, at all-time lows of $53.

The average cost average that $ARKK purchased $COIN at was $254.65.

— unusual_whales (@unusual_whales) July 27, 2022

After a 21% decrease from the opening price of $61.74, Coinbase ended the day at the $52.93 mark. The exchange is currently 84% down when compared to its all-time high.

ARK Invest invested in nearly 546,579 shares of Coinbase in May, which were worth $29 million after the market crashed. 

ARK Invest’s sudden decision to dump the shares could be due to the sudden probe by the SEC with regards to accusations of insider trading against Coinbase. That isn’t all there is also an ongoing investigation regarding whether the platform allowed the users to trade digital assets that should have been registered as securities.

Cathie Wood liquidated a large chunk of Coinbase’s shares this Tuesday amidst the reports of the SEC probe. As per the reports, Ark has lost $280 million on the trades.

Coinbase weightings are currently at 2.93% in ARKK, 4.91% in ARKW, and 5.87% in ARKF respectively. The stock is ARKK’s fourteenth-biggest holding and the seventh and fifth biggest holding, respectively, for ARKW and ARKF.

Coinbase is down since last week and has retreated from $79 on Wednesday to a low of $52.63 on Monday, showing a peak decline of about 33%.

What are your views on this? Would a major company like ARK endure a loss of this extent just because of a probe, or is there something grimmer at play? Comment below!

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