On July 17th, three ARK Invest ETFs unloaded another batch of Coinbase shares.
Cathie Wood, CEO of ARK Investment Management, expressed optimism for the future of Coinbase, taking into account the recent court decision favoring Ripple partially against the Securities and Exchange Commission (SEC).
In Wood's perspective, while Ripple didn't secure a complete win, the judgment was advantageous for crypto exchanges.
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This sentiment aligns with several crypto industry experts who believe the judgment could set an encouraging precedent for other crypto exchanges, like Coinbase and Binance, that are also entangled in legal confrontations with the same regulator.
Wood further pointed out that despite the SEC lawsuit filed in June and the Wells Notice that Coinbase received earlier in March, the crypto exchange's stock prices have managed to sustain, indicating a strong investor belief in the value of Coinbase shares.
As of July 17th, ARK Investment's three ETFs capitalized on the recent surge in the value of Coinbase stock, selling a total of 248,838 shares valued at $26.3 million. This follows ARK Innovation ETF's sale of Coinbase shares worth $12 million just six days prior, on July 11th.
It is worth noting that at the beginning of 2023, Coinbase shares retailed for just $33.50. However, in six months, it witnessed a whopping increase of over 184%, standing at $105.55 at the time of the report.
Even though several industry figures are growing more optimistic about Coinbase, analysts from Berenberg Capital Markets issued a word of caution. They pointed out that many regulatory matters related to crypto exchanges are still up in the air.
In an investment note dated July 17th, Mark Palmer, the lead analyst at Berenberg, warned that one of Coinbase's offerings, Coinbase Earn, which offers returns on crypto staking, could be classified as a security.
