ARK Invest invests in Coinbase and Block Inc. The company does not seem to be succumbing to regulatory pressure
The investment company led by Cathie Wood buys shares of companies from the digital currency sector.
An American investment company based in Florida managing modern projects has made two huge investments in companies from the digital currency sector in recent days. This is because it acquired shares in the cryptocurrency exchange Coinbase for USD 21 million, as well as shares in Block Inc. for a considerable amount of USD 19.9 million. In the opinion of ARK Invest CEO Cathie Wood, the cryptocurrency platform led by Brian Armstrong may emerge victorious after a series of recent attacks by the Securities and Exchange Commission (SEC).
ARK Invest decided to acquire shares of Coinbase and Block Inc.
Despite the fact that the digital currency platform Coinbase received a lawsuit from the SEC, in which the US financial market regulator accused it of intentionally selling unregistered securities in the form of a staking service for some cryptocurrencies, a well-known investment company decided to buy its shares.
ARK Invest, after a thorough analysis of the entire situation, invested as much as USD 21 million in COIN after the SEC attacks that appeared during this week. At this point, it is worth adding that the shares of the company Coinbase listed on Nasdaq visibly and consistently decreased after the steps taken by the Securities and Exchange Commission.
Coinbase's troubles caused concern among investors, which led to the COIN price dropping from the levels of $58.26 seen on June 5 this year to just $47.03 a day later. Of course, the cryptocurrency community must not lose sight of the fact that this valuation is currently hovering around $54.90 after a slight rebound. Moreover, the price of Block Inc. shares, which were also acquired by ARK Invest for the investment portfolio, experienced a price increase during the same period.
Coinbase is in a better legal position than Binance
In one of the recent interviews with Bloomberg, Cathie Wood explained that more forceful accusations against the world's largest digital currency exchange in terms of daily turnover may consequently work in Coinbase's favor.
The founder of ARK Invest shared the information that she expresses strong hope that the exchange run by Brian Armstrong may emerge victorious in the dispute with the Securities and Exchange Commission. In the opinion of the American, the Binance platform will have a much more difficult challenge to overcome. This is because, in addition to offering unregistered securities, the SEC has accused this cryptocurrency exchange of allowing its clients to launder money. Moreover, the American financial regulator accused the management of this company of mixing corporate funds with those belonging to the platform's clients.
Finally, Cathie Wood stated that there is no doubt that Coinbase will win against the SEC, and she also noted that the extremely aggressive approach of this financial regulator to the digital currency sector has a negative impact on innovative cryptocurrency initiatives in the US. Despite everything, this investor does not stop expressing her optimistic attitude towards the cryptocurrency industry in the US.