Cathie Woods ARKK hits 2017 low as FTX collapse spurs crypto wreck
The flagship exchange-traded fund of ARK Invest has fallen to its lowest level in five years after the cryptoworld’s latest crisis sent risk assets into a tailspin this week.
Ark Innovation ( ARKK ), the firm’s main beleaguered ETF, fell more than 6.5% to $32.57 on Wednesday, extending the fund’s losses to nearly 80% from its February 2021 high.
As of Tuesday’s close, the fund is down around 63% so far in 2022.
The slide came as crypto-related stocks collapsed following the rapid collapse of FTX, the digital asset exchange run by billionaire Sam Bankman-Fried.
ARKK holdings Coinbase (COIN) and Block (SQ) fell roughly 10% and 9%, respectively, on Wednesday. Roblox (RBLX), another Wood favorite that dabbles in crypto, gained 21%.
The famed fund manager has been a staunch cryptocurrency bull, predicting earlier this year that Bitcoin (BTC-USD) would top $1 million by 2023. Following reports Wednesday afternoon that Binance, the world’s largest crypto exchange, pulled out of an emergency deal to acquire FTX as it faces potential insolvency. Bitcoin fell below $16,000 on the news.
Even as the sudden decline of FTX and concerns about its partnerships rattled the crypto ecosystem this week, Wood expanded his holdings of Coinbase – the second-largest crypto exchange by volume.
On Tuesday, ARK Invest picked up more than 420,000 shares of the company, according to a transaction report from the firm, after it fell about 11% — and before it posted another loss of nearly that magnitude on Wednesday following the firm’s dip buy.
Coinbase CEO Brian Armstrong claimed on Twitter on Tuesday that his company had no material exposure to FTX or its subsidiaries.
In a webcast hosted by ARK earlier this week, Wood also said the reported acquisition of the exchange would boost its remaining competitors — but that was before Binance pulled out of buying FTX.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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