Cathie Wood Expresses Bullish Outlook on Coinbase Following Ripple Court Ruling

Cathie Wood, the CEO and founder of ARK Investment Management, expressed her bullish outlook on Coinbase after Ripple’s recent partial victory in its legal battle against the Securities and Exchange Commission (SEC).

While acknowledging that the ruling didn’t entirely favor Ripple, Wood viewed the outcome as largely positive for cryptocurrency exchanges. She joined other industry experts in suggesting that the ruling, which concluded that XRP tokens sold to retail investors on crypto exchanges were not securities, could establish a favorable precedent for Coinbase and Binance in their ongoing legal disputes with the SEC.

Wood highlighted the resilience of Coinbase’s share price, noting that despite receiving a Wells notice in March and facing an SEC lawsuit in June, the stock never plummeted to new lows. This suggests a robustness in the value of Coinbase stock, according to Wood.

On July 17, three of ARK Investment’s exchange-traded funds (ETFs) took advantage of Coinbase’s recent rally by selling a total of 248,838 shares worth $26.3 million. These sales followed an additional $12 million worth of Coinbase stock sold by the ARK Innovation ETF on July 11.

Coinbase began trading in 2023 at $33.60 per share. As of now, the COIN shares have surged over 184% to reach $105.55, according to TradingView data.

While the sentiment towards Coinbase is increasingly positive among industry players, analysts from investment firm Berenberg Capital Markets cautioned that several regulatory aspects concerning crypto exchanges still require resolution. In a July 17 investment note, lead analyst Mark Palmer highlighted Coinbase Earn, a financial product offering yield on crypto staking, as potentially vulnerable to being classified as a security in light of Judge Analisa Torres’ comments in the Ripple case ruling.

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