Cathie Wood’s Ark Invest Buys These Shares After Selling Coinbase, Here’s Why

Cathie Wood’s Ark Invest sold over 1.4 million shares of Coinbase Global (COIN) in three funds on Tuesday as the price falls to an all-time low of $52.93. The move comes amid Coinbase’s poor performance and the SEC investigation into listing unregistered securities.

All three funds mostly purchased Shopify and Roku shares after selling COIN shares.

Ark Invest Unloads Coinbase Shares Amid Poor Performance and SEC Investigation

Cathie Wood’s asset management firm Ark Invest has sold over 1.5 million shares of Coinbase worth almost $75 million in three of its funds as Coinbase’s share price falls 21% to $52.93 on July 26. Coinbase’s share price has fallen due to poor earnings amid the bear market and the SEC’s investigation into the listing of unregistered securities.

ARK Innovation Exchange-Traded Fund (ARKK) has sold 1.13 million COIN shares and acquired 1.32 million Shopify, 2.19 million Ginkgo Bioworks, 414k Roku, and 235k Tusimple Holdings shares.

ARK Next Generation Internet ETF (ARKW) has sold 174,611 COIN shares and purchased 201,546 Shopify and 64,894 Roku shares.

And, ARK Fintech Innovation ETF (ARKF) has sold 110,218 COIN shares, along with some other companies’ shares, and purchased 238,088 Shopify, 112, 715 Toast, and 105,615 Roku shares.

According to Unusual Whales, Cathie Wood’s Ark Invest had purchased Coinbase (COIN) shares for an average cost of $254.65. It means Ark Invest has lost over $200 million in Coinbase trades.

Recently, Cathie Wood’s ARK Invest also bought 546,579 shares in Coinbase worth nearly $29 million after shares tanked, but the recent scenarios have forced the asset management firm to sell its Coinbase’s holdings. Also, Cathie Wood bought 750k shares of COIN on IPO day for three of her exchange-traded funds.

The three funds now have over 6.5 million shares in total, with 4.7 million in ARKK, 959k in ARKF, and 1.27 million in ARKW.

Coinbase Under the SEC Investigation

Cathie Wood’s Ark Invest has been acquiring Coinbase shares as the price continues to dive low amid the bear market. However, the SEC starting an investigation into Coinbase’s listing of unregistered securities has forced the firm to sell some of its Coinbase holdings.

The SEC believes Coinbase is listing securities, while Coinbase denies the allegations, saying it analyzes and reviews cryptocurrencies before listing on its platform. In fact, the process was reviewed by the SEC.