Cathie Wood’s investment firm, Ark Invest, displayed its confidence in Coinbase despite the United States Securities and Exchange Commission (SEC) lawsuit by purchasing additional shares on the same day.

The move comes as Coinbase’s stock faced a significant decline following the regulatory action. Ark Invest’s commitment to the cryptocurrency exchange is evident, with Coinbase ranking as one of its top holdings across multiple funds.

The recent purchase of $21.64 million worth of Coinbase shares reaffirms Ark Invest’s bullish stance on the company.

Ark Invest Expands Coinbase Position Amidst SEC Lawsuit: On Tuesday, Ark Invest’s flagship ETF, Ark Innovation ETF, acquired 329,773 shares of Coinbase, as reported by the fund manager’s trading desk.

Furthermore, Ark Next Generation Internet ETF added 53,885 shares, while Ark Fintech Innovation ETF purchased 35,666 shares.

These combined purchases amounted to a total investment of $21.64 million, based on Coinbase’s closing stock price of approximately $52 on Tuesday.

Coinbase Faces SEC Lawsuit and Stock Decline: The timing of Ark Invest’s additional investment in Coinbase coincided with a sharp decline in the exchange’s stock price following the SEC lawsuit.

The regulatory agency accused Coinbase of violating rules by allowing trading of tokens that were not registered as securities.

This led to a substantial drop in Coinbase’s stock, with a peak decline of 21% before closing down 12%. In response, Coinbase vowed to fight the legal battle and take it to the Supreme Court.

Ark Invest’s Confidence in Coinbase: Despite the recent challenges faced by Coinbase, Ark Invest remains optimistic about the cryptocurrency exchange’s future. Coinbase holds a prominent position as the fifth-largest stock holding across Ark Invest’s funds.

The investment firm currently holds nearly $650 million worth of Coinbase stock, with an average holding cost ranging from $239 to $255, based on available data. These figures demonstrate Ark Invest’s unwavering belief in Coinbase’s long-term prospects.