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ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) collectively shed 149,780 COIN shares, signaling a calculated approach to managing While dumping Coinbase, ARK has made its first purchase of the Canada-based 3iQ Ether staking ETF (ETHQ.U), which is a fund seeking long-term capital appreciation On July 17 Cathie Wood amp 8217 s ARK Invest sold another batch of Coinbase shares The investment firm reduced its COIN holdings from the ARK Innovation ETF “We believe Coinbase Earn, the securitized product through which COIN offers staking rewards to retail customers, appears particularly vulnerable to being defined as Investor Cathie Woods’ Ark Invest has purchased additional Coinbase (COIN) shares worth $13.4 million across three of its exchange-traded funds. The investment Coinbase is confronting the SEC over its aggressive regulatory stance on digital assets, demanding formal laws as Ark Invest divests COIN. Amid a booming crypto Ark sold 239,237 Coinbase shares ($36 million) from its Innovation ETF and 43,867 ($6.6 million) from its Next Generation Internet ETF. These sales followed the disposal

ARK Sells 250,000 Coinbase Shares Amid Staking Vulnerability Concerns

ARK Invest, led by Cathie Wood, has significantly reduced its holdings in Coinbase (COIN) amidst growing concerns about the regulatory landscape and potential vulnerabilities in Coinbase's staking programs. On July 17, Cathie Wood’s ARK Invest sold another batch of Coinbase shares, continuing a trend of reducing exposure to the cryptocurrency exchange.

ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) collectively shed 149,780 COIN shares, signaling a calculated approach to managing risk within their portfolios. Ark sold 239,237 Coinbase shares ($36 million) from its Innovation ETF and 43,867 ($6.6 million) from its Next Generation Internet ETF. These sales followed the disposal of other COIN holdings, bringing the total shares sold closer to the 250,000 mark.

Concerns Over Coinbase Earn and SEC Scrutiny

The decision to reduce Coinbase holdings appears linked to the ongoing tensions between Coinbase and the Securities and Exchange Commission (SEC). Coinbase is confronting the SEC over its aggressive regulatory stance on digital assets, demanding formal laws as Ark Invest divests COIN. “We believe Coinbase Earn, the securitized product through which COIN offers staking rewards to retail customers, appears particularly vulnerable to being defined as a security.”

The potential classification of Coinbase Earn as a security has raised concerns about the future of staking rewards and the overall regulatory compliance of Coinbase's offerings. The firm’s potential vulnerability in the space also appears to be factoring into the decision-making process.

ARK Invest Diversifies into Ether Staking ETF

While dumping Coinbase, ARK has made its first purchase of the Canada-based 3iQ Ether staking ETF (ETHQ.U), which is a fund seeking long-term capital appreciation. This suggests a shift in strategy, with ARK Invest exploring alternative avenues for exposure to the cryptocurrency market.

ARK Invest's Previous Coinbase Investments

It's worth noting that Investor Cathie Woods’ Ark Invest has purchased additional Coinbase (COIN) shares worth $13.4 million across three of its exchange-traded funds in the past, indicating a fluctuating investment approach based on evolving market conditions and regulatory developments. Amid a booming crypto market, Ark's recent sales highlight the importance of active portfolio management in the face of uncertainty.

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