ARK Fintech Innovation ETF sells 99% stake in Silvergate crypto bank

Exchange-traded fund ARK Fintech Innovation sold about 404,000 Silvergate shares, reducing ETF holdings by 99%. ARK Fintech has liquidated nearly all reserves in Silvergate Capital stock after the crypto-asset-focused bank said customer deposits fell from $11.9 billion to $3.8 billion. The bank was forced to sell the securities and related derivatives for a loss of $718 million. Silvergate told investors that the reason for this position was the undermined confidence in this asset class on the part of venture investors due to the consequences of the collapse of FTX. At the end of last week, Silvergate's share price fell by almost 50%.. Since its all-time high of $222 in November 2021, the stock has fallen more than 94%, losing about $5.5 billion in market value.. Recall that just two months ago, the ARK Fintech Innovation Fund acquired more than 200,000 shares of the bank. In mid-December 2022, a lawsuit was filed against Silvergate and its CEO in the US District Court for the Southern District of California. The lawsuit alleges that the company and personally Alan Lane (Alan Lane) directly contributed to the fraudulent activities of the FTX cryptocurrency exchange.