Cathie Wood, CEO of ARK Investment Management, has expressed her bullish stance on Coinbase following Ripple’s partial win over the Securities and Exchange Commission (SEC) on July 13. Wood, along with other industry experts, believes the decision could positively impact Coinbase and Binance in their legal battle with regulators.
Wood admits the ruling isn’t entirely in Ripple’s favor, but he sees it as a positive development for the crypto exchange as a whole. Even though Coinbase faced a Wells Notice in March and a lawsuit from the SEC in June, Wood noted that the share price never hit new lows, demonstrating the resilience of Coinbase’s share value.
On July 17, the three Wood’s Ark Investment (ETF) exchange-traded funds sold a total of 248,838 shares of Coinbase, worth $26.3 million. This comes shortly after the Ark Innovation ETF sold an additional $12 million worth of Coinbase shares on July 11. Since the start of 2023, Coinbase shares have surged over 184%, starting at $33.60 and reaching $105.55 at the time of publication.
While many industry players are becoming more bullish on Coinbase, analysts from Berenberg Capital Markets warn that regulatory uncertainty for crypto exchanges remains. In a July 17 investment note, principal analyst Mark Palmer stated that Coinbase Earn, a product that offers returns on crypto betting, could be vulnerable to being defined as a security based on comments made by Judge Torres in the ruling on the Ripple case.
Wood’s positive outlook on Coinbase is in line with the growing optimism around the exchange. However, regulatory challenges and the evolving legal landscape remain a concern for the crypto industry as a whole.