Ark Investment Management sold some of its stake in Coinbase Global (COIN) late July after a report that the SEC was probing the crypto exchange around certain securities listings, CEO Cathie Wood said on Bloomberg TV Monday.
Wood mentioned a slight “thesis risk” increase in Coinbase. The ETF manager dumped 1.1 million COIN shares – “very little,” Wood said – on a volatile trading day. The fund still owns almost five million Coinbase shares (according to Ark’s holdings data).
Ark opted to sell some of its large Coinbase stake amid the SEC probe report as certain securities would potentially need to be delisted if they aren’t registered with the SEC. On the flipside, Wood says Ark pondered how Coinbase’s business model could change if they did register with the SEC.
In spite of this, Ark continues to remain bullish on crypto. It alluded to Coinbase’s recent partnership with BlackRock in a note to clients Monday.
“Blackrock’s decision to partner with Coinbase is a strong signal that institutions consider crypto––starting with bitcoin––a new asset class. We agree that bitcoin has earned an allocation into well diversified portfolios,” Ark analyst Yassine Elmandjra said in a note.
Read more: Cathie Wood’s Ark Invest Offloads Over 1.4M Coinbase Shares as COIN Price Falls