Funds managed by ARK Invest acquired a total of 268,928 Coinbase shares worth $17.8 million.
The company split the purchase as follows:
- flagship fund Ark Innovation ETF (ARKK) — 230,599 securities;
- Next Generation Internet (ARKW) – 38,329.
The decision follows a partial sale of $13.5 million worth of Bitcoin exchange shares two days earlier.
As a result of trading on March 23, the capitalization of Coinbase collapsed by 14.1%.
Investors reacted to the notice SEC about the investigation into the listing procedure on the platform and its products – Coinbase Prime, Coinbase Wallet and staking service Coinbase Earn. The company announced its readiness for litigation.
Claims against the exchange arose a month after rival Kraken settled allegations regarding a staking program, the offer and sale of which the latter “did not register.” The platform agreed to shut it down and pay $30 million in fines.
The head of the SEC, Gary Gensler, then called on the crypto industry to pay attention to the Kraken story.
Prior to this, the head of the Commission called the digital asset market centralized. He urged the platforms to apply to the SEC regarding the recognition of an asset as an investment contract. The official also warned of the possible prosecution of unregistered bitcoin exchanges.
Recall that in October 2022, ARK Invest bought Coinbase securities for the first time since June. In November, the structures of the management company spent another $21.4 million for these purposes, in December – $3 million and $5 million.
In February 2023, the firm invested $6.7 million and $9.27 million in the platform. By the end of the month, ARK Invest acquired $16.9 million worth of Coinbase shares.
In March, the organization allocated an additional $3.44 million for these purposes.
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