ARK Investments' flagship ETFs faced significant pressure in Q4 2025 due to a downturn in the cryptocurrency market, with Coinbase emerging as the primary drag. According to ARK's quarterly report, the performance of ETFs such as ARKW, ARKF, and ARKK was notably impacted by the weak performance of crypto-related stocks. Coinbase's stock plummeted over 35% this quarter, outpacing declines in Bitcoin and Ethereum.
Despite Coinbase's efforts to showcase its long-term strategic vision, the challenging market environment has weighed heavily on its stock. Additionally, Roblox contributed to the ETFs' underperformance, affected by a forecasted decline in operating profit margin and a ban in Russia. Cryptocurrency investments currently constitute 13.7%, 14.6%, and 7.4% of ARKW, ARKF, and ARKK, respectively.
ARK ETFs Hit by Crypto Market Slump, Coinbase Leads Decline
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