Saturday, June 22, 2024

Cathie Wood: ARK Invest Bullish on Coinbase Following Ripple’s SEC Lawsuit Win

In a recent interview with Bloomberg, ARK Invest CEO Cathie Wood expressed her bullish stance on Coinbase, the leading cryptocurrency exchange in the United States. This positive outlook comes in the wake of a significant ruling in the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

While ARK Invest did decide to sell some of its Coinbase shares to capitalize on profits, Wood remains optimistic about the future prospects of the crypto exchange. According to her, the ruling in the SEC’s lawsuit against Ripple for the sale of its XRP token is a groundbreaking development that bodes well for exchanges as a whole.

“We’re very positive on Coinbase, especially given the court ruling favoring Ripple and opposing the SEC. Although there were some ups and downs, overall, it’s a positive sign for exchanges. As a result, we’re highly optimistic. The stock has experienced significant growth. If you recall, in March and June, we were concerned about a Wells notice and an SEC lawsuit, which had a negative impact on the stock, but it didn’t reach new lows, and that’s when we made purchases.”

With Coinbase now being the second-largest holding in ARK Invest’s flagship strategy, and the largest in ARKF, their fintech strategy, they are taking the opportunity to cash in some profits and reallocate capital to other potentially undervalued assets.

The XRP ruling had a profound effect on Coinbase’s shares, sending them soaring. Legal experts even suggested that this ruling could indicate a favorable outcome for Coinbase in the SEC’s lawsuit filed against the exchange in June, which accused Coinbase of selling unregistered securities.

After the SEC lawsuit, Coinbase’s share price hit a low of $50.56, but it rebounded significantly, closing at $104.59 on Tuesday, representing an impressive increase of over 106%.

Overall, Cathie Wood’s positive sentiments and the favorable XRP ruling have contributed to the renewed confidence in Coinbase’s future growth potential in the crypto market.

Read Also: How to Mine Bitcoin: A Comprehensive Guide to Cryptocurrency Mining

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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