Cathie Wood’s ARKK hits 2017 low as FTX collapse spurs crypto wreck

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The flag­ship exchange-trad­ed fund of ARK Invest has fall­en to its low­est lev­el in five years after cryptoworld’s lat­est cri­sis sent risk assets into a tail­spin this week.

Ark Inno­va­tion (ARKK), the firm’s belea­guered main ETF, sank more than 6.5% to $32.57 on Wednes­day, deep­en­ing the fund’s loss to near­ly 80% from its Feb­ru­ary 2021 high.

As of Tues­day’s close, fund is down about 63% so far in 2022.

The slide came as cryp­to-relat­ed stocks cratered 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 favorite of Wood dab­bling in cryp­to, tanked 21%.

The famed fund man­ag­er has been a staunch cryp­tocur­ren­cy bull, fore­cast­ing ear­li­er this year that the Bit­coin (BTC-USD) would top $1 mil­lion by 2023. After reports Wednes­day after­noon that Binance, the world’s largest cryp­to exchange, backed out of an emer­gency deal to acquire FTX as it faces poten­tial insol­ven­cy. Bit­coin dropped below $16,000 on the news.

MIAMI, FLORIDA - APRIL 7: Michael Saylor (R), Chairman & CEO, MicroStrategy, gestures as he speaks during the Bitcoin 2022 Conference, next to Catherine Wood, chief executive officer and chief investment officer, Ark Invest, at Miami Beach Convention Center on April 7, 2022 in Miami, Florida. The world's largest bitcoin conference runs from April 6-9, expecting over 30,000 people in attendance and over 7 million live stream viewers worldwide. (Photo by Marco Bello/Getty Images)

MIAMI, FLORIDA — APRIL 7: Michael Say­lor ®, Chair­man & CEO, MicroS­trat­e­gy speaks dur­ing the Bit­coin 2022 Con­fer­ence next to Cather­ine Wood, founder and CEO of Ark Invest. (Pho­to by Mar­co Bello/Getty Images)

Even as the sud­den down­fall of FTX and con­cerns around its part­ner­ships rat­tled the cryp­to ecosys­tem this week, Wood expand­ed her hold­ings of Coin­base — the sec­ond-largest cryp­to exchange by vol­ume.

On Tues­day, ARK Invest snapped up more than 420,000 shares of the com­pa­ny, per a trans­ac­tion report from the firm, after it fell rough­ly 11% – and before it post­ed anoth­er loss of near­ly that mag­ni­tude Wednes­day fol­low­ing the fir­m’s dip purchase.

Coin­base CEO Bri­an Arm­strong assert­ed Tues­day on Twit­ter that his com­pa­ny did not have any 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’s backed out of acquir­ing FTX.

Alexan­dra Semen­o­va is a reporter for Yahoo Finance. Fol­low her on Twit­ter @alexandraandnyc

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