June 20 (Cointime) - Cathie Wood, CEO and CIO of ARK Invest, has explained why her flagship fund, Ark Innovation, is increasing its position in Coinbase shares despite the SEC's lawsuit against Binance. ARK Invest purchased almost 330,000 shares of Coinbase on June 6, 2023, worth about $17 million at the time. Wood believes that if Coinbase wins its legal battles with the SEC, it will become the only cryptocurrency exchange in the USA.

However, Coinbase is also facing a lawsuit from the SEC regarding the trading and staking of unregistered securities, and there are rumors that the company may have invested in projects it planned to list on the exchange before they became available to the public. Additionally, Coinbase Ventures has been accused of listing projects on its exchange that also appeared in its investment portfolio, which could lead to further investigation by financial authorities. Despite these challenges, Cathie Wood remains optimistic about Bitcoin, stating that it can outperform in a deflationary environment due to being an antidote to counterparty risk in the traditional financial system. She maintains her $1 million price target for Bitcoin.