ARK Fintech Innovation ETF sells 99% stake in Silvergate crypto bank

- Article Top Advertisement -

Exchange-traded fund ARK Fintech Innovation sold about 404,000 Silvergate shares, reducing ETF holdings by 99%.

- Article Inline Advertisement 1-

ARK Fintech has liquidated almost all reserves in Silvergate Capital shares after the crypto-asset-focused bank reported that customer deposits fell from $11.9 billion to $3.8 billion. The bank was forced to sell the securities and related derivatives at a loss of $718 million

Silvergate told investors that the reason for this position was the undermined confidence in this asset class on the part of venture investors due to the consequences of the collapse of FTX.

- Advertisement -

At the end of last week, Silvergate’s share price fell by almost 50%. Since its all-time high of $222 in November 2021, the shares have fallen more than 94%, losing about $5.5 billion in market value. Recall that just two months ago, the ARK Fintech Innovation Fund acquired more than 200,000 shares of the bank.

In mid-December 2022, a lawsuit was filed against Silvergate and its CEO in the US District Court for the Southern District of California. The lawsuit alleges that the company and personally Alan Lane (Alan Lane) directly contributed to the fraudulent activities of the FTX cryptocurrency exchange.

Source: Bits

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles