The founder and CEO of ARK Investment Management, Cathie Wood, stated that she is still bullish about Coinbase following the Ripple’s partial victory over the Securities and Exchange Commission on July 13.
Although Wood acknowledged that the decision wasn’t entirely in Ripple’s favour, she praised the result as “by and large, extremely favourable for digital currency exchanges.”
Wood joins the ranks of cryptocurrency industry experts who have made comparable arguments, claiming that the decision, which determined that XRP tokens offered to retail investors on digital currency exchanges were not securities, could set favourable examples for Coinbase and Binance in their corresponding legal disputes with the regulator.
Wood also stated that the share price had hardly hitten new lows in spite of the cryptocurrency exchange receiving the warning in March and being hit with litigation from the SEC in June, indicating resilience in the overall value of Coinbase stock.
On July 17, three of Wood’s ARK Investment exchange-traded funds (ETFs) took advantage of the recent upswing on the cryptocurrency exchange by selling a total of 248,838 shares, which were valued at $26.3 million.
These sales happened six days after the ARKInnovation ETF sold more Coinbase stock on July 11 for $12 million.
In 2023, Coinbase’s shares only cost $33.60/share. As per Tradingview data, shares of COIN have increased by more than 184%. At the time of publication, coinbase shares closed at the price of $105.55.
While many industry participants are becoming more bullish for Coinbase share, experts from the investment firm Berenberg Capital Markets cautioned that several regulatory issues related to cryptocurrency exchanges are still left to be resolved.
Lead analyst Mark Palmer stated in an investment note dated July 17 that given the remark made by Judge Analisa Torres in her decision on the Ripple case, Coinbase Earn appears “particularly vulnerable” to being classified as a security. Coinbase Earn is a financial product that provides yield on crypto staking.
