Cathie Wood Maintains Bullish Outlook on Coinbase Despite Ripple Lawsuit
In Brief
Cathie Wood remains bullish on Coinbase following the court ruling in favor of Ripple Labs against the SEC, while ARK Invest continues to sell off Coinbase stock, attributing the activity to profittaking and reallocating capital to other opportunities, despite the potential positive precedent for Coinbase and other exchanges facing regulatory challenges.
ARK Investment Management founder and CEO, Cathie Wood, has expressed her continued optimism for cryptocurrency exchange, Coinbase, following a recent court ruling favoring Ripple Labs over the Securities and Exchange Commission (SEC).
Wood’s Stance Unchanged Amid ARK’s Recent Activities
Despite ARK Investment’s recent offloading of Coinbase shares, Wood’s perspective on the exchange remains positive. She emphasized the potential impact of the Ripple court ruling on the cryptocurrency industry in her recent interview on Bloomberg TV.
ARK Investment offloaded an additional $50 million worth of Coinbase shares on July 15 as the stock experienced an upturn. According to Wood, this move can be attributed to the firm’s strategy of capitalizing on the profits and reallocating resources to other promising investment opportunities.
Cathie Wood: A Potential Positive Precedent for Coinbase
Ripple Labs achieved a significant victory in their lawsuit against the SEC, which led to an upswing in cryptocurrency prices and related equities as the week drew to a close.
In December 2020, the SEC sued Ripple Labs. They accused Ripple of marketing XRP as unregistered securities. A New York court ruled XRP as a security for institutions, not the public. This led to a 90% surge in XRP value to $0.82.
Wood’s viewpoint echoes those of other industry experts who suggest that Ripple’s victory could set a positive precedent for Coinbase and other exchanges embroiled in similar regulatory disputes, potentially influencing Coinbase and Binance‘s ongoing legal battles with the SEC.
Despite receiving a Wells Notice in March and facing an SEC lawsuit in June, Coinbase’s share price has proven resilient, exhibiting relative stability. Wood highlighted this robustness in Coinbase’s stock value.
ARK Invest CEO Cathie Wood says she is positive on Coinbase in light of a court ruling against the SEC and in favor of Ripple's XRP token https://t.co/LBPK9A0skm pic.twitter.com/FDch3rQ5Wr
— Bloomberg TV (@BloombergTV) July 17, 2023
Regulatory Concerns Still Loom
Optimism surrounds Coinbase’s future. Yet, Berenberg Capital Markets analysts warn that crypto exchange regulations aren’t fully resolved. They highlighted Coinbase Earn, a product that offers crypto staking yield, as potentially susceptible to classification as a security.
Coinbase’s stock has shown robust performance this year, rallying 189.3%. It closed slightly below its one-year high of $107 at $105.55 on Monday.
Wood remains positive about Coinbase, inspired by Ripple’s recent court ruling. She also admires the exchange’s resilience despite regulatory challenges.
- The U.S. Securities and Exchange Commission is taking legal action against Coinbase for allegedly operating without proper registration.
Read more related articles:
- Cathie Wood’s Ark Investment Management Reduces Coinbase Stake amid Recent Stock Rally
- Cathie Wood, Founder and CEO of Ark Invest
- Coinbase Faces SEC Lawsuits: Hydro (HYDRO) And Solana (SOL) Take Hits While Uwerx (WERX) Presale Prospers
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
