Funds controlled by Cathie Wood unloaded Coinbase shares for the first time in 2022, as the largest cryptocurrency exchange in the US faces an investigation by US authorities.
Three Ark Investment Management funds sold about 1.41 million shares worth about $75 million by the close of trading on Tuesday, according to daily Ark trading data cited by Bloomberg. Flagship Ark Innovation ETF sold 1.13 million shares.
Coinbase Global’s stock lost a fifth of its value on Tuesday, down 79% since the start of the year.
Coinbase is facing an investigation by US authorities over whether it allowed Americans to exchange digital assets that should be classified as securities, according to people with knowledge of the matter.
Ark was Coinbase’s third-largest shareholder, owning 8.95 million shares as of the end of June, according to Bloomberg data. Since the company’s IPO in 2021, Ark has been systematically buying shares.
The Ark Innovation ETF has sunk 54% since the start of 2022, amid concerns that global monetary tightening will pressure valuations of growth stocks and push the global economy into recession.
Wood is in the process of closing one of its ETFs for the first time in its investment history.
Source: Capital
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