Cathie Wood-led ARK Investment Management bought a whopping $20.5 million stake in cryptocurrency exchange platform Coinbase Global Inc COIN on Thursday. Funds operated by ARK purchased over 353,000 shares of the company on a day when its stock fell over 7.8%.
The purchase was conducted via the flagship ARK Innovation ETF ARKK and the ARK Next Generation Internet ETF ARKW .
Also Read: How To Buy Coinbase (COIN) Stock
Coinbase shares have risen over 72% since the beginning of the year led by a resurgence in crypto trading. Bitcoin BTC/USD is up over 20%, while Ethereum ETH/USD has gained over 18% during the period.
However, a large class action lawsuit could be the next big overhang in the crypto industry. Law firm CryptoLawyers.org announced it has commenced an investigation on behalf of customers of Coinbase, Robinhood Markets Inc HOOD , and other cryptocurrency exchanges, who have purchased crypto securities from those companies.
The investigation concerns possible violations of state and federal securities laws and the failure to furnish investors with material risk disclosures as required by those laws, a release said.
We believe Coinbase, Robinhood, and other exchanges have violated the law, and investors who lost money purchasing cryptocurrencies on their platforms may be entitled to recover those losses, co-founder Tom Grady said.
CryptoLawyers.org is currently asking clients of Coinbase, Robinhood, and other exchanges who suffered losses purchasing cryptocurrencies on their platforms to reach out to share information about their investments.
Other Buy: ARK also bought over 265,000 shares of Robinhood at an estimated valuation of over $2.5 million based on Thursday's closing price.
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