Ark Invest Buys More Coinbase Stocks
- Ark Investment Management LLC’s daily trading disclosures state that three Ark funds purchased over 420,000 shares in the US-based exchange company, Coinbase, this Tuesday.
- Coinbase CEO Brian Armstrong commented on the FTX crisis and stated that Coinbase does not engage in risky behaviors and that his company has no plans to acquire FTX US.
- The recent COIN purchase by Ark coincides with the Federal Financial Supervisory Authority of Germany or BaFin’s recent warning to the German arm of Coinbase to be careful with its operations in the region.
Cathie Wood’s Ark Invest has recently added a stake in crypto exchange Coinbase after its biggest competitor Binance signed a deal to buy FTX’s non-US business.
Though the deal between FTX and Binance is now canceled, Ark Investment Management LLC’s daily trading disclosures state that three Ark funds purchased over 420,000 shares in the US-based exchange company this Tuesday. This is the second purchase by Cathie Wood since July; before this, Ark Funds bought COIN shares on October 24.
Notably, Coinbase CEO Brian Armstrong recently commented on the FTX crisis and stated that Coinbase does not engage in risky behaviors and that his company has no plans to acquire FTX US.
Ark buys the dip
Wood’s company, which holds more than 7.7 million COIN shares or 4.3% stake in Coinbase as of September 30, is the fourth largest shareholder of the exchange.
Ark decided to buy the dip when COIN plunged 11% on Tuesday, marking the lowest levels since July 1.
Amid the rising concerns over how the relationship between Binance and FTX will reshape the $1 trillion crypto industry, majority of cryptocurrencies are back to the ground. Bitcoin is sitting at two-year-low, trading around $16,000 zone at the time of writing.
Despite the ongoing uncertainty in the industry, Coinbase is actively planning strategy for expansion in the United States. Recently, Armstrong said that problems like the liquidity crisis arise as a result of the lack of clear regulatory certainty in the country. He stated:
“We should continue to work with policy makers to create sensible regulation for centralized exchanges/custodians in each market (as we’ve been doing for some time), but then we need to see a level playing field enforced, which hasn’t happened to date.”
BaFin probing Coinbase Germany
The recent COIN purchase by Ark coincides with the Federal Financial Supervisory Authority of Germany or BaFin’s recent warning to the German arm of Coinbase to be careful with its operations in the region. The allegation was issued as a result of the disorganized behavior, which falls short of the standards set by the company. Additionally, such an act by the company is not in accordance with local legislation.
BaFin, who is in charge of regulating the financial services industry in the country, aims to lower the rate of national money laundering. To achieve this goal, the organization monitors financial organizations such as payment services, pension funds, banks, financial institutions, insurance companies, and others.
According to BaFin, Coinbase Germany has been undergoing several inquiries from various other regulatory bodies around the world.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
