Arch Invest CEO Cathy Wood confirmed Monday that the Securities and Exchange Commission’s (SEC) labeling of nine tokens traded on Coinbase as unregistered securities prompted the firm to sell a portion of the shares held on the cryptocurrency exchange. did.
CEO Said SEC ClaimWhat came just a few days ago has led to some degree of regulatory “uncertainty” for the crypto industry, according to bloomberg,
On July 26, Ark Investments sold more than 1.4 million shares in Coinbase worth $75 million. according to Fund’s websiteWood’s company still holds $451 million worth of shares in the company.
Arch Investments has a history of buying Coinbase stock since it debuted on the Nasdaq in April 2021. As of the end of June, it was Coinbase’s third largest shareholder, holding 8.95 million shares, bloomberg informed of.
Wood said he made the move because the price of shares in Shopify had fallen in the meantime and seemed like a favorable choice amid confusion over how Coinbase would deal with regulators.
Wood told the financial news service that he questioned how many tokens Coinbase would have to remove from its exchange if the company decided not to register them, and how the company’s business model could be affected if it did. .
It also clarified that the charges leveled against individuals by the SEC allegedly running An insider trading plan did not influence Arch Investments’ decision to sell shares in Coinbase. One of the people charged in the case is a former Coinbase product manager who had prior knowledge of the tokens that will be newly listed on the exchange.
Since the firm has partnered with some of its holdings in Coinbase, the exchange’s share price has risen 84% from $52.93 on July 26 to $97.67 as of this writing. The stock recently rallied on a Announcement That Coinbase inked a deal with asset manager BlackRock, providing cryptocurrency trading technology to institutional investors on BlackRock’s Aladdin platform.
Even though Coinbase has taken strong gains in its share price recently, shares of the company are still down 61% from earlier this year, when they went on Wall Street for about $251 per share.