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

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The ARK Fintech Innovation ETF sold about 404,000 shares of Silvergate, reducing the ETF's holdings by 99%.

ARK Fintech has liquidated almost all reserves inshares of Silvergate Capital after the bank, focused on transactions with crypto assets, reported that customer deposits fell from $11.9 billion to $3.8 billion. The bank was forced to sell securities and related derivatives at a loss of $718 million.

Silvergate told investors that the situation was due to eroded confidence in the asset class among venture investors due to the fallout from the collapse of FTX.

At the end of last week the stock priceSilvergate fell 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.

Mid-December 2022 vs. Silvergateand its CEO were sued in the US District Court for the Southern District of California. The lawsuit states that the company and Alan Lane personally contributed directly to the fraudulent activities of the FTX cryptocurrency exchange.