Cathie Wood’s Ark Innovation ETF buys battered Coinbase shares, extending a strategy of purchasing falling tech stocks for long-term gains.
Ark Investment Management, led by Cathie Wood, purchased $11.5 million of Coinbase shares following a prolonged decline. The move aligns with Wood’s strategy of doubling down on high-growth tech stocks during downturns, aiming for long-term appreciation.
Ark Innovation ETF (ARKK) outperformed the S&P 500 in 2025 with a 35.49% return, compared to the index’s 17.88%. However, year-to-date, ARKK has risen just 0.33%, lagging the S&P 500’s 7.43% gain. Wood’s approach has yielded mixed results, including a 153% surge in 2020 but a 60% drop in 2022.
Over five years, ARKK’s annualized return stands at -8.89%, underperforming the S&P 500’s 11.43%. Wood attributes tech’s volatility to its deflationary impact, focusing on sectors like AI, blockchain, and robotics despite short-term fluctuations.