Giant investment fund Cathie Wood's Ark Invest bought $8.6 million worth of Coinbase shares after cryptocurrency exchange Coinbase sued the SEC.
Cathie Wood's Ark Invest Purchases Shares of Cryptocurrency Exchange Coinbase
On the day that the United States-based crypto exchange Coinbase announced that it has filed a lawsuit with the Securities and Exchange Commission, the American investment management company Ark Invest, Coinbase Global Inc. announced the acquisition of shares in the company.
According to a transaction notice shared via email, the ARK Innovation ETF purchased 122,083 shares in Coinbase, while the ARK Next Generation Internet ETF added 20,327 shares. ARK Fintech Innovation ETF bought 14,633 shares.
The total value of the purchased shares amounts to approximately $8.6 million at current prices.
Coinbase's lawsuit against the SEC follows a rulemaking petition the company filed with the US securities regulator last summer.
This petition aims to force the institution to respond yes or no to Coinbase's request for the commission to prepare and approve a rule specific to digital assets.
"From the SEC's public statements and enforcement activities in the crypto industry, it looks like the SEC has already decided to reject our petition," said Paul Grewal, the company's chief legal officer, in a blog post on the application.
"But they haven't made that public yet. So Coinbase's lawsuit today requests the court to ask the SEC to share its decision."
If the regulator rejects this request, Coinbase may file another lawsuit for the federal court to force the SEC to impose a new rule.
On the other hand, Coinbase CEO Brian Armstrong backed an NFT project to signal "unity for the crypto community seeking sensible crypto policy" right after the exchange filed a lawsuit with the SEC.
*Not investment advice.
