Ark Innovation ETF Records The Best Month Ever

The ARK Innovation ETF (ARKK) of Cathie Wood had a rather tumultuous time in the previous year, but it recorded a partial bounce back in the month of January.

The exchange traded fund (ETF) saw its shares end the month at a value of $39.93, which is an increase of 28% from December, making it the best monthly performance of the ETF since its launch in 2014.

The ETF

The purpose of the Innovation ETF is to leverage growth from different kinds of technology that are capable of changing the world.

2020 was a great year for the fund, as it was able to notch an increase of 154%, but the next year, it saw its market price decline by 24%.

As far as last year is concerned, a tightening of the economy saw the price of the fund crater by almost 60%. Wood’s Innovation ETF does not just hold a substantial amount of stock in companies like Zoom and Tesla.

Along with tech firms, the fund also possesses millions of shares of Coinbase, which is a publicly-listed crypto exchange.

4.5% of the fund can be attributed to shares of the San Francisco-based firm, which has a value of about $347 million.

Coinbase

Last year, the Coinbase holdings of the ARKK ETF recorded an increase, even though there was an ongoing crypto winter.

This data was available on the website named Cathie’s Ark which tracks the funds’ holdings. Last year, Ark Invest had opted to make purchases 24 times.

This saw it buy about 2.7 million shares of the Coinbase exchange, even after selling about a million shares back in July.

Months after the initial public offering (IPO) of the crypto exchange, Ark Invest started acquiring shares in the exchange in October of 2021.

Other ETFs of the investment house also own shares of the Coinbase exchange. These include the Next Generation Internet ETF and the Fintech Innovation ETF.

The former also comprises shares in the Bitcoin Trust of Grayscale Investments, which are valued at almost $70 million.

The rally

Wood had acknowledged recently that the collapse of the FTX crypto exchange had had a negative impact on the stock price of Coinbase.

She stated that the fallout that had been seen in the crypto market had contributed to depreciation in the stock price.

However, the stock price of Coinbase had been struggling long before the downfall of its rival. In November 2021, the stock price reached a high of $368 per share.

This was when the crypto market had been at its peak. But, the stock price recorded a decline of 84% and had come down to $57.94.

But, there was a rally recently in the price of BTC and Ethereum and this had also pushed up the stock price of Coinbase as well.

Shares of Coinbase had started the year $33.60, but they have already recorded an increase of 72.5%, while Bitcoin and Ethereum have also surged 38.5% and 31.4%, respectively.