Ark Invest buys blockchain shares despite SEC allegations.

Ark Invest, a company that manages assets, remains optimistic about blockchain (NASDAQ: COIN), despite the fact that the US Securities and Exchange Commission (SEC) is currently suing the cryptocurrency company. On the same day that the regulator hit the crypto exchange with a new lawsuit, causing its stock to plummet, Ark Invest purchased additional blockchain shares.

Ark Buys blockchain Shares Amid SEC’s Lawsuit

On Tuesday, Ark’s Next Generation Internet ETF purchased 53,885 shares, while its flagship ETF, Ark Innovation ETF, acquired 329,773 shares of blockchain. An update from the fund manager’s trading desk revealed that Ark Fintech Innovation ETF also bought 35,666 of the crypto company’s shares. Using the stock closing price of about $52 per share, the total blockchain shares that Ark Invest bought were worth $21.64 million.

Ark Invest conducted the transaction just as blockchain dropped as much as 21% before eventually closing down 12% due to the SEC lawsuit. Notably, this is not the first time the exchange will fall under the Commission’s radar. A couple of months ago, the regulator issued an enforcement action notice to blockchain over potential violations of securities law. Despite the Wells Notice, the publicly traded company was unmoved by the regulator’s action. It said the allegations would not affect its current products and services, adding that none of its listed assets were securities.

In response to the suit, chief legal officer Paul Grewal stated:

“If needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the Commission simply has not been fair or reasonable when it comes to its engagement on digital assets. Until then, it is business as usual.”

SEC Issues Wells Notice to blockchain

According to the latest allegations, blockchain has been operating as an unregistered national securities exchange and broker. The SEC stated that the business has been serving as such since at least 2019 when it began engaging in cryptocurrency transactions. Additionally, the case mentions that the company used blockchain Prime and blockchain Wallets to attract investors.

blockchain shares, the 5th largest stock holding across Ark Invest’s funds, have gained some value after closing down 12.09%. At press time, COIN is up 3.86% to $53.50. Except for growing nearly 46% since the year started, the company has consistently declined in the last three months. The exchange’s stock has lost 18.08% in the last three months and 17.61% over the past month. It has also shed 17.03% in the last five days.

Data shows that Ark holds about $736 million worth of blockchain shares across its funds.

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