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Reasons Why Cathie Wood's Ark is Aggressively Buying Crypto Exchange Shares Despite SEC Concerns

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By Erika John - - 5 Mins Read
The CEO of Ark Invest, Cathie Wood
Cathie Wood, Ark Invest CEO | Getty


The CEO of Ark Invest, Cathie Wood
Cathie Wood, Ark Invest CEO (Getty Images)



ARK Invest CEO Cathie Wood seems to be on an investing spree after data shows her buying up shares in different crypto exchanges, despite the issues the industry currently faces with the Securities and Exchange Commission.


The crypto company CEO purchased about $21 million of Coinbase a few days ago before adding another $19.9 million in Block Inc. shares across its ETFs. This comes as a surprising move considering the fact that many crypto establishments, including the most valuable exchange Binance, are facing legal troubles with the SEC. Even Coinbase, where Cathie Wood's portfolio invested $21 million, has also been sued by the SEC for breaking several regulatory laws.


On Monday, the United States Securities and Exchange Commission accused Binance of selling several unregistered securities, such as Ripple and Cardano tokens. Coinbase was also charged with similar acts, as the crypto exchange allegedly made billions of dollars by putting customers'/investors' funds at risk. 


Coinbase share price has depreciated since the SEC announced their new charges against the crypto company. On the other hand, Block Inc., which holds another significant part of Cathie Wood's recent investments, has seen its stock price appreciate within the past few days.


Data from ARK Invest Daily Trades showed the Block Inc. shares were purchased between 7 and 8th June. It came across six buys, and about 305,573 new shares of Block were purchased within the same period. The Block Inc. shares were purchased for $19.9 million and now represent ARK’s fourth largest holding at 4.81%. On the other hand, Coinbase shares purchase happened across three buys on June 6, and the total deal was worth around $21.6 million. 

Ark Invest ramped up 419,324 Coinbase shares on June 6th alone

Opportunity to Make Profits — Ark Invest Says 

The CEO of Ark Invest believes that the current market conditions provide a great opportunity for the company to profit from their investments. Despite recent developments involving Binance and Coinbase causing some individuals to lose interest in investing in these companies, Cathie Wood remains optimistic and has contingency plans in place. She predicts that the situation will ultimately favor Coinbase, despite the crypto exchange facing lawsuits from the SEC.


"We have Binance under increasing regulatory scrutiny for more criminal activities, fraud being one of them, therefore we have the competition for Coinbase disappearing, so that’s a good thing longer term for Coinbase," Cathie Wood said


With their new investments around Coinbase, it becomes ARK Invest’s seventh largest holding at 4.39%. According to a website tracking Cathie Wood's portfolio, it says that part of the new investments on Coinbase was the COIN token spread across its ARKF, ARKK, and ARKW ETFs. Cathie Wood has also shared her thoughts on Bitcoin making it through the recent turbulence in the crypto industry. She said that Bitcoin is capable and would survive the recent issues as it was built for situations like this. 


"Why would Bitcoin do well in that circumstance? It will do well because it’s an antidote to counterparty risk in the traditional financial system," Cathie Wood said.