Cathie Wood Sells her Coinbase Shares amidst insider trading charges

Ark Investment Management has dumped massive shares after the regulators probed Coinbase for alleged insider trading.

Cathie Wood’s Ark Investment Management held nearly $9 million as of late June and is the third largest shareholder of Coinbase.

According to daily trade information from Ark, on July 26, the investment sold more than 1.4 million Coinbase (COIN) shares.

Three Ark exchange-traded funds were sold:

1. Ark Innovation ETF (ARKK) sold 1,133,495 COIN shares or 0.6833% of the funds of the fund’s total investments.

2. Ark Next Generation Internet ETF (ARKW) sold 174,611 shares or 0.6768% of the fund’s total investments.

3. ARK Fintech Innovation ETF (ARKF) sold 174,611 shares or 0.6768% of the fund’s total investments.

Despite the drop in Coinbase shares, ARK was steadily buying the COINS. In May, it bought 546,579 shares.

Since Coinbase’s IPO last year, the investment company has been actively acquiring its shares, and by April 2022, it had nearly 750,000 shares total. The stock’s initial opening price was $350.

After the news broke of the possible SEC probe, stocks of Coinbase were down by 21% on July 26.

According to the Bloomberg report, the SEC is probing whether the exchange enabled Americans to trade unregistered securities in the form of crypto assets.

In the past, there have been disputes between the SEC and Coinbase. Coinbase said on its blog earlier in July that it had petitioned the SEC to establish a clear rulemaking procedure for digital asset securities.

Several issues are plaguing Coinbase, including claims of insider trading, the removal of $248 million worth of stablecoins from its platform, and a steep drop in stock prices.

And Cathie Wood’s Ark Investment Management Company selling her shares makes everything look even murkier.