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ARK Invest CEO Cathy Wood appeared to be unimpressed by the recent moves by cryptocurrency regulators after purchasing another 19.9 million shares of Block Inc. immediately after buying $21 million in Coinbase shares.
Wood’s latest buying spree comes despite the US Securities and Exchange Commission suing two industry heavyweight exchanges, Binance (June 5) and Coinbase (June 6) for offering, among other things, what the regulator considers unregistered securities. papers.
Coinbase’s share price was cut within days of the SEC lawsuit, but Block Inc. rose sharply over the same period of time.
According to ARK Invest Daily Trades, 305,573 new Block shares from ARK Invest were purchased six times between June 7 and 8, currently representing ARK’s fourth-largest holding with a 4.81% share.
Of the new shares, 240,174 were added to the ARK Innovation (ARKK) ETF, 39,099 shares were added to the ARK Next Generation Internet (ARKW), and the remaining 26,300 shares were added to the ARK Fintech Innovation (ARKF).
As for Coinbase, ARK Invest bought 419,324 shares worth about $21.6 million in three purchases on June 6, which came in the midst of COIN’s nearly 20% drop overnight on June 5.
While many believe the lawsuits have hurt crypto firms, Wood recently told Bloomberg that the tougher charges leveled against Binance could ultimately work in Coinbase’s favor:
“We have Binance under scrutiny from regulators due to new criminal activities, fraud is one of them, so we have no competition for Coinbase, so in the long run it’s good for Coinbase.”
According to Cathi’sARK.com, Coinbase is currently ARK Invest’s seventh largest holding with a 4.39% share.
According to Cathi’sARK.com, ARK Invest has seen an 8.2% increase in COIN shares since the first quarter, which was driven by a 20.2% increase and a 25.2% increase in the fourth quarter of 2022 and the first quarter of this year.
Because of regulatory uncertainty, innovation seems to be leaving the US for more friendly regimes. unfortunate. I believe it will become an election-year issue. https://t.co/PvqK9W27Fd
— Cathie Wood (@CathieDWood) June 4, 2023
While Wood is becoming increasingly optimistic about Coinbase, she believes that SEC regulation through an enforcement approach has harmed cryptocurrency innovators in the US.
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The tech-savvy CEO is extremely optimistic about Bitcoin (BTC) in the long term as well.
In an interview with Bloomberg, Wood explained that Bitcoin was designed to thrive in times of market turbulence and regulatory uncertainty:
“Why would Bitcoin do well under these circumstances? That’s good, because it’s the antidote to counterparty risk in the traditional financial system.”
In April 2022, Wood predicted that Bitcoin would reach $1 million by 2030.