Kathy Wood dumps Coinbase shares for the first time this year
(Bloomberg) — A fund controlled by Kathy Wood dumped Coinbase Global Inc’s stock for the first time this year as the largest US crypto exchange faces an investigation.
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According to Arc’s daily trading data compiled by Bloomberg, Three Arc Investment Management LLC funds sold more than 1.41 million shares, worth $75 million as of Tuesday’s close. The firm’s flagship Arc Innovation ETF sold 1.13 million shares.
Read more: Coinbase faces SEC investigation over crypto listing; share tumble
Shares of Coinbase Global lost nearly a fifth of their value on Tuesday. They are up about 4% in pre-market trading on Wednesday, and are down about 79% this year.
According to people familiar with the matter, Coinbase is facing a US investigation into whether it lets Americans trade digital assets that should have been registered as securities.
Coinbase Chief Legal Officer Paul Grewal said on Twitter, “We believe that our rigorous due diligence process – a process that has already been reviewed by the SEC – keeps securities off our platform, and we will discuss the matter with the SEC.” Looking forward to joining you.” The SEC declined to comment.
As of the end of June, Arch was the company’s third largest shareholder, holding approximately 8.95 million shares, according to data compiled by Bloomberg. It has been largely buying shares of the platform since its launch in 2021.
Arc Investment Management has lost nearly half of its assets under management since December, and its flagship Arc Innovation ETF fell 54% in 2022 amid concerns that a global monetary tightening capped stock valuations and a slowdown in the economy. put in. Wood is now closing one of its exchange traded funds for the first time.
(Update to include pre-market trading in the third paragraph.)
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