Cathie Wood Loads Up on Crypto Stocks After Sector Pullback
What Did ARK Buy During the Selloff?
Cathie Wood’s ARK Invest increased its exposure to crypto-linked equities during a sector pullback, adding shares of Coinbase, Circle and Bullish as prices moved lower. The purchases were disclosed in ARK’s daily trading reports for Friday.
The ARK Innovation ETF and the ARK Fintech Innovation ETF together bought 38,854 shares of Coinbase through ARKK, with an additional 3,325 shares added via ARKF. The combined purchases amounted to roughly $9.4 million. Coinbase shares ended the session down 2.77% at $216.95, extending recent weakness in crypto-exposed stocks.
ARK also added 129,446 shares of Circle Internet Group across the two ETFs, a position valued at about $9.2 million. Circle shares were largely flat on the day, slipping 0.03%. In addition, ARK bought 88,533 shares of Bullish, investing approximately $3.2 million as the stock fell 2% to close at $35.75.
The crypto-focused additions were partly offset by sales elsewhere in the portfolio. ARK reduced its exposure to Meta Platforms, selling 12,400 shares valued at around $8.03 million.
Investor Takeaway
How Has the Crypto Pullback Affected ARK ETFs?
The latest buying follows a difficult period for ARK’s flagship funds, which have been weighed down by weakness in crypto markets. During the fourth quarter of 2025, crypto-linked equities were among the largest contributors to underperformance across several ARK ETFs.
Coinbase stood out as the largest detractor over the quarter, dragging on results at the ARK Next Generation Internet ETF, ARKF and ARKK. ARK attributed the stock’s underperformance to a sharper decline than seen in Bitcoin and Ether, as spot trading volumes on centralized exchanges fell 9% quarter on quarter after October’s liquidation event.
Lower trading activity reduced revenue expectations for exchange operators, putting pressure on valuations even as digital asset prices showed relative resilience. That divergence has made crypto equities more volatile than the underlying tokens, amplifying their impact on fund performance.
Other holdings also weighed on results. Roblox was cited as the second-largest drag despite reporting strong third-quarter bookings growth. Shares fell after the company warned of declining operating margins in 2026 and faced additional pressure following Russia’s decision to ban the platform.
Why ARK Continues to Add Crypto Exposure
Despite recent weakness, ARK has continued to frame crypto-linked assets as long-term growth opportunities. The firm’s purchases suggest it views current price levels as attractive relative to its longer-term outlook for digital assets and related infrastructure companies.
ARK has argued that crypto equities can offer leveraged exposure to broader adoption trends, particularly during periods when institutional participation expands. Exchanges, stablecoin issuers and trading platforms tend to benefit disproportionately when volumes recover, even if they experience sharper drawdowns during market stress.
This approach reflects ARK’s broader investment style, which has historically favored high-volatility assets with large upside potential over shorter-term stability. That philosophy has produced periods of outsized gains as well as extended drawdowns, especially during shifts in liquidity conditions.
Investor Takeaway
How ARK Sees the Crypto Market Long Term
ARK’s continued buying comes alongside an aggressive long-term outlook for the digital asset market. In its Big Ideas 2026 report, the firm projected that the overall crypto market could reach a value of $28 trillion by 2030, driven largely by rising Bitcoin adoption and price appreciation.
The forecast assumes a compound annual growth rate of 61% for the crypto market, with Bitcoin accounting for roughly 70% of total value. Based on an estimated supply of about 20.5 million Bitcoin by 2030, ARK’s assumptions imply a price range close to $950,000 to $1 million per coin.
ARK has pointed to rising institutional participation as a key driver of that outlook. The firm noted that Bitcoin ETFs and corporate holders increased their share of total supply during 2025, reinforcing the view that demand is broadening beyond retail traders.
