Ark Investment Management sold some of its stake in Coinbase Global (COIN) late July after a report the U.S. Securities and Exchange Commission (SEC) was probing the crypto exchange about whether certain listings could be considered securities, CEO Cathie Wood said on Bloomberg TV Monday.

Wood mentioned a slight “thesis risk” increase in Coinbase. The exchange-traded fund (ETF) manager dumped 1.1 million COIN shares – "very little," Wood said – on a volatile trading day. The fund still owns almost five million Coinbase shares (according to Ark's holdings data).

Ark opted to sell some of its large Coinbase stake because of the reported SEC probe and how it could potentially change Coinbase's business model.

Ark, however, continues to remain bullish on crypto. An Ark analyst alluded to Coinbase's recent partnership with asset manager BlackRock (BLK) in a note to clients Monday.

"BlackRock’s decision to partner with Coinbase is a strong signal that institutions consider crypto – starting with bitcoin [BTC] – a new asset class. We agree that bitcoin has earned an allocation into well diversified portfolios," Ark analyst Yassine Elmandjra said in a note.

Read more: Cathie Wood's Ark Invest Offloads Over 1.4M Coinbase Shares as COIN Price Falls