Two days previous to the announcement that the Wells notification was forthcoming, 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 that any of ARK Invest’s ETFs had sold Coinbase shares. In spite of the decline in Coinbase’s share price, this transaction represented the first time that any of ARK Invest’s ETFs has ever sold Coinbase shares. It is essential to take into consideration the fact that authorities and insiders at Coinbase participate in 10B5-1 selling plans months in advance, and that this tranche of sales was carried out in line with a trading strategy that was formed on August 16.
After the publication of the Wells notice, which warned of possible enforcement action by the SEC, the share price of Coinbase has not been able to recover to its former level. This is likely due to the fact that the SEC is likely…
