ARK Investment Boosts Crypto Holdings with Coinbase, Circle, and Bullish Purchases During Market Downturn
Cathie Wood's ARK ETFs experienced significant headwinds during Q4's cryptocurrency market decline, with Coinbase stock representing the most substantial negative impact on returns.
ARK Invest, led by Cathie Wood, has expanded its holdings in cryptocurrency-related stocks, purchasing additional shares in Coinbase, Circle, and Bullish while the broader digital asset sector experienced price declines.
Based on ARK's publicly disclosed trading activity from Friday, the ARK Innovation ETF (ARKK) acquired 38,854 shares of Coinbase Global Inc., with the ARK Fintech Innovation ETF (ARKF) purchasing an additional 3,325 shares, representing a combined investment of approximately $9.4 million in the cryptocurrency exchange's stock. Trading concluded with Coinbase shares posting a 2.77% decline for the session, finishing at $216.95.
The investment firm accumulated a total of 129,446 shares of Circle Internet Group between ARKK and ARKF, representing an investment valued at approximately $9.2 million. Additionally, the firm purchased 88,533 shares of Bullish distributed across these same ETFs, committing roughly $3.2 million to the position. Circle's stock price remained relatively stable throughout the trading day, experiencing a minimal 0.03% decrease, whereas Bullish shares saw a 2% reduction during the session, settling at $35.75.
In conjunction with the cryptocurrency-related acquisitions, ARK reduced holdings in other portfolio positions, most notably Meta Platforms, disposing of 12,400 shares with an estimated value of approximately $8.03 million.
ARK ETF Performance Pressured by Cryptocurrency Sector Decline
According to previous Cointelegraph coverage, the cryptocurrency market correction throughout the fourth quarter of 2025 created substantial challenges for multiple ARK ETFs managed by Cathie Wood. Within its quarterly performance disclosure, ARK identified cryptocurrency-related equity positions as a primary driver of underperformance across its flagship exchange-traded fund offerings.
The largest contributor to negative performance during the quarter was Coinbase, which hindered returns at the ARK Next Generation Internet ETF (ARKW), ARKF, and ARKK. According to ARK's analysis, Coinbase stock experienced more pronounced declines compared to Bitcoin (BTC) and Ether (ETH) as centralized exchange spot trading volumes contracted by 9% on a quarter-over-quarter basis in the aftermath of the liquidation event that occurred in October.
The second-most significant performance detractor for ARK ETFs was Roblox, which saw share price weakness despite delivering robust bookings growth in the third quarter. The stock experienced downward pressure after management issued guidance indicating deteriorating operating margins expected in 2026, with additional negative sentiment stemming from Russia's decision to prohibit the platform within its borders.
ARK Invest Forecasts Crypto Market Expansion to $28T by Decade's End
ARK's persistent commitment to the cryptocurrency sector aligns with the firm's expectations that the digital asset marketplace could achieve a valuation of $28 trillion by 2030, with Bitcoin adoption increases and price appreciation serving as the primary catalysts. Within its Big Ideas 2026 research publication, ARK forecasted that the crypto market would experience expansion at a 61% compound annual growth rate, with Bitcoin representing approximately 70% of the aggregate market capitalization.
According to ARK's projections, assuming approximately 20.5 million Bitcoin will have been mined by 2030, the forecast suggests a Bitcoin price ranging between $950,000 and $1 million. The firm highlighted increasing institutional adoption as a key factor, observing that Bitcoin ETFs and corporate treasury holders expanded their portion of the total circulating supply throughout 2025.