Cathie Wood, the CEO and founder of ARK Investment Management, has expressed her optimism about Coinbase following Ripple’s recent legal victory over the Securities and Exchange Commission (SEC) on July 13.
While Wood acknowledged that the ruling did not entirely favor Ripple, she still viewed it as a positive development for cryptocurrency exchanges as a whole.
Wood’s sentiments align with those of other experts in the crypto industry who believe that the ruling, which determined that XRP tokens sold on exchanges were not securities, could set a favorable precedent for Coinbase and Binance in their ongoing legal battles with the SEC.
Despite receiving a Wells notice in March and facing a lawsuit from the SEC in June, Coinbase’s share price did not reach new lows, indicating resilience in the value of the company’s stock.
READV MORE: Ex-Federal Prosecutor Surprised by Potential SEC Appeal in Ripple Case
On July 17, three of Wood’s ARK Investment exchange-traded funds (ETFs) took advantage of Coinbase’s recent rally and sold a total of 248,838 shares, amounting to $26.3 million at the time.
This came after the ARK Innovation ETF sold an additional $12 million worth of Coinbase stock on July 11.
Coinbase’s shares have seen a significant surge since the beginning of 2023, starting at $33.60 per share and reaching $105.55 at the time of publication, marking an increase of over 184%, according to TradingView data.
While many industry insiders are becoming increasingly bullish on Coinbase, analysts from Berenberg Capital Markets have cautioned that several regulatory aspects concerning crypto exchanges are yet to be resolved.
In an investment note on July 17, lead analyst Mark Palmer highlighted Coinbase Earn, a product offering yield on crypto staking, as particularly vulnerable to being classified as a security.
Palmer’s concerns stemmed from Judge Analisa Torres’ remarks in her ruling on the Ripple case.
In conclusion, Cathie Wood’s positive outlook on Coinbase in light of Ripple’s legal victory reflects a growing optimism within the crypto industry.
However, analysts warn that regulatory challenges for crypto exchanges are still unresolved, and specific products like Coinbase Earn may face scrutiny.
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