Coinbase: Cathie Wood Now Selling

The company is under investigation by SEC regarding listings.Major supporter sells stake in three active ETFs.Short interest hits a new high in mid-July.When looking at US markets on Tuesday, one of the biggest losers ended up being Coinbase (COIN). The cryptocurrency firm lost more than 21% after it was reported that the company is under investigation by the SEC regarding its digital asset listing process. While investors are feeling plenty of pain already, it might not help short term sentiment that one of the firm's biggest backers sold a chunk of its stake during Tuesday's trading.The probe apparently involves whether or not Coinbase improperly let Americans trade digital assets that should have been registered as securities. Last week, Bloomberg reported that a former employee violated insider trading rules by leaking information to help his brother and a friend buy tokens just before they were listed on the platform. Coinbase is the largest US trading platform with more than 150 tokens, but the company has stated it does not list securities.There certainly appeared to be a lot of sellers for the day, but perhaps the most notable one we know of so far was Cathie Wood and the Ark Invest team. The active ETF manager jumped into Coinbase right away once the company started trading publicly last year, and has increased her position significantly over time. As of Monday's close, Ark Invest owned more than 8.6 million shares of...