Two days before the announcement of Wells’ next notice, ARK Invest had already sold 160,887 of its Coinbase shares using the ARK Fintech Innovation ETF. When this transaction took place in 2023, it was the first time any of ARK Invest’s ETFs had sold Coinbase shares. Despite the drop in Coinbase’s share price, this transaction represented the first time any of ARK Invest’s ETFs had sold Coinbase shares. It is essential to take into account the fact that Coinbase authorities and members participate in 10B5-1 sales plans months in advance, and that this sales tranche was carried out in accordance with a trading strategy that was formed on August 16th.
After the publication of Wells’ notice, which warned of possible enforcement action by the SEC, Coinbase’s share price has been unable to recover to its previous level. This is probably due to the fact that the SEC is likely to take enforcement action. Brian Armstrong, the firm’s chief executive, had also sold shares in his company between March 17 and 20, just days before Wells’ notice and the ensuing drop in share price. These sales were made between March 17 and 20.
Following the SEC’s settlement with Kraken on February 9, in which Kraken’s staking services were alleged to qualify as securities, Coinbase has repeatedly asserted that its staking products are fundamentally different from Kraken’s products. This is in response to allegations that Kraken’s staking services qualified as securities. After the conclusion of the settlement talks between the SEC and Kraken, Coinbase made its claims.
In conclusion, ARK Invest continued to buy Coinbase shares despite receiving information from Wells and a drop in Coinbase share price. This is the case even if Coinbase’s share price has fallen. Prior to Wells’ notice, Coinbase executed a trading plan it had devised on Aug. 16 to sell 160,887 shares of its ARK Fintech Innovation ETF. Coinbase has claimed that its staking products do not constitute securities in any way.
