Cathie Wood Continues to Have Faith in Coinbase Despite Ongoing Ripple Lawsuit
In Brief
Cathie Wood's bullish perspective on Coinbase is unwavering after the favorable court decision for Ripple Labs against the SEC. Meanwhile, ARK Invest continues to divest from Coinbase shares, which they attribute to profit-taking and a strategic redirection of capital towards other investments, all while recognizing the potential positive ramifications for Coinbase and similar exchanges in light of regulatory obstacles.
ARK Investment Founder and CEO of ARK Investment, Cathie Wood, has expressed retains a hopeful view regarding the cryptocurrency trading platform Coinbase following a recent court decision that favored Ripple Labs against the Securities and Exchange Commission (SEC). SEC ).
Wood Maintains Her Viewpoint During ARK’s Recent Moves
In spite of ARK Investment's recent sales of Coinbase shares, Wood's outlook on the trading platform remains optimistic. In a recent dialogue on Bloomberg TV, she underscored the potential ramifications of the Ripple court ruling for the broader landscape of cryptocurrency.
On July 15, ARK Invest sold off another $50 million of Coinbase shares as the stock began to climb. According to Wood, this decision aligns with the firm's strategy to realize profits and shift resources towards more favorable investment avenues.
Cathie Wood: A Potential Catalyst for Positive Change at Coinbase
Ripple Labs scored a critical win in their legal battle against the SEC, resulting in an uptick in cryptocurrency market prices and related stocks as the week concluded.
In December 2020, the SEC sued Ripple Labs Ripple had been accused of promoting XRP as unregistered securities. However, a New York court determined that XRP functions as a security for institutional investors only, not for the general public. This ruling resulted in a remarkable 90% surge in XRP's value, reaching $0.82.
Wood's perspective is in line with that of other industry analysts who posit that Ripple's judicial success could pave the way for favorable outcomes for Coinbase and other exchanges entangled in similar regulatory challenges, potentially impacting Coinbase's ongoing litigation with the SEC. Binance In spite of receiving a Wells Notice back in March and subsequently facing an SEC lawsuit in June, Coinbase’s stock has demonstrated remarkable resilience, maintaining stability throughout this tumultuous period. Wood highlighted the strength of Coinbase’s stock value under these circumstances.
ARK Invest's CEO Cathie Wood expresses her positive sentiment toward Coinbase in light of a recent court ruling favoring Ripple against the SEC regarding the XRP token.
The atmosphere surrounding Coinbase's prospects is indeed optimistic. However, https://t.co/LBPK9A0skm pic.twitter.com/FDch3rQ5Wr
— Bloomberg TV (@BloombergTV) July 17, 2023
Regulatory Concerns Still Loom
market analysts caution that the regulations for cryptocurrency exchanges remain unresolved. They mentioned Coinbase Earn, which provides crypto staking yields, as potentially vulnerable to being classified as a security. Berenberg Capital Coinbase's stock has displayed strong performance this year, boasting a 189.3% increase, closing just under its one-year peak of $107 at $105.55 on Monday.
Wood's optimism about Coinbase is fueled by Ripple's recent ruling, while she also commends the exchange's ability to weather regulatory storms.
The U.S. Securities and Exchange Commission is pursuing legal action against Coinbase on allegations of
- Cathie Wood’s ARK Investment Management Decreases Holding in Coinbase Amid the Stock's Recent Rise operating without proper registration.
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