Published -July 11th, 2023 @ 11:10 AM (GMT+2)

Resilience Amid Legal Challenges

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Coinbase's recent performance has been nothing short of impressive. Despite facing a securities violation lawsuit from the Securities and Exchange Commission (SEC), Coinbase's shares have climbed nearly 50% since the case's inception. This bullish trend indicates Coinbase's resilience in the face of legal uncertainty.

In the past few weeks, Coinbase shares (NASDAQ:COIN) have witnessed a massive surge of 60%, increasing from around $50.56 on June 12 to $81.21 on July 10. Year-to-date, the stock is up by approximately 141%, demonstrating investor confidence in the firm despite legal hurdles. Remarkably, COIN's all-time high was noted on Nov. 12, 2021, when it reached $342.98 per share.

Coinbase's CEO, Brian Armstrong, continues to hold a significant portion of the company's shares, even as he has been steadily selling off part of his ownership. Notably, senior officials at Coinbase collectively sold around 88,058 shares, netting approximately $6.9 million on July 6.

ARK Invest's Confidence in Coinbase
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One major player demonstrating unwavering confidence in Coinbase's potential is ARK Invest, Cathie Wood's investment company. In June, ARK Invest bought an additional 400,000 Coinbase shares, solidifying their stance on the firm's growth trajectory. Wood's confidence stems from her belief that the value of Coinbase shares is positively correlated with Bitcoin's price. On June 19, she reaffirmed her conviction that Bitcoin would eventually hit the $1 million mark. To further consolidate their interest in cryptocurrency, ARK Invest has resubmitted their application for a spot Bitcoin ETF in collaboration with 21Shares.

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BlackRock's Partnership with Coinbase
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In another major development, BlackRock, the world's largest asset manager, re-filed its application for a spot Bitcoin ETF with the SEC on July 3. Significantly, the application detailed a "surveillance-sharing agreement" with Coinbase, which boosted both Coinbase shares and the overall crypto market.

BlackRock was among the fund managers whose initial ETF applications were deemed "inadequate" by the SEC, prompting re-submissions. The revised filing detailed an agreement between Nasdaq and Coinbase to supplement the exchange's market surveillance program and provide access to spot BTC trade data.

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Despite approving several futures-based ETFs, the SEC remains hesitant about supporting spot-based ETFs physically backed by the asset instead of CME contracts. The industry perceives this as an attempt by the SEC and Wall Street to control the crypto asset class.

Boost to Coinbase Shares
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Despite the regulatory scrutiny, the market response to Coinbase's partnership with BlackRock was unequivocally positive. The firm's shares soared nearly 12% on June 3, with COIN trading at $80.98 in after-hours on July 4. This gain marks an impressive 140% increase since the start of the year, surpassing the crypto market's growth, which stood at about 52% over the same period.

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For more information regarding Coinbase news, Read more

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