Ark Invest sold Coinbase shares for the first time in a long time
Date: 2023-07-14 Author: Karina Ziganova Categories: BLOCKCHAIN
Cathie Wood's investment fund Ark Invest sold 135,152 shares of cryptocurrency exchange Coinbase on Tuesday, July 11, when the shares rose 9.78%.
Ark Invest has reduced its stakes in Coinbase shares for the first time since July 26 last year. Now the fund has Coinbase shares worth $711.24 million — that is, 8.25% of its total assets. Ark is the fourth-largest owner of Coinbase shares, having been buying them on falling prices for nearly 11 months.
What's Going On With Coinbase Stock
In total, since the beginning of the year, shares of the crypto platform have risen in price by 165%. The latest gain comes after Cboe submitted amendments to applications for five bitcoin ETFs, thanks in part to observation exchange agreements with Coinbase. Prior to this, the Cboe-operated BZX exchange chose Coinbase as the trading platform for its surveillance data sharing agreement.
In the filings, Cboe stated that Coinbase "accounts for a significant portion of U.S. dollar-denominated bitcoin transactions." As such, she named the exchange as a partner for surveillance sharing agreements.
'Inadequate applications'
In June 2023, several companies again applied to open a spot bitcoin ETF. The hype came after investment giant BlackRock applied for a spot bitcoin trust. Other organizations followed the foundation. In addition, applications for the launch of a spot bitcoin ETF, among other things, were submitted by Bitwise and Invesco.
However, the SEC called the flow of applications "inadequate." Market participants, in turn, rushed to make adjustments to the documents in order to prove to the regulator the effectiveness and safety of the instrument. Now all applications are under consideration by the regulator.
At the same time, the former head of the SEC, Jay Clayton, believes that the tool should be approved. According to him, it will be difficult for regulators to reject a spot bitcoin ETF if market participants who submit applications to the SEC to launch such a tool can demonstrate its effectiveness.
