Chinese approach to Bitcoin Another blow for Cathie Woods Ark ETF

WOOD, which said that Bitcoin will increase to $ 500,000, has invested just over $ 1 billion in the cryptocurrency trading company Coinbase Global Inc, a position that makes up for about 4.7% of its 21.7-billion dollar fund. The Coinbase shares fell by more than 1.5%on Friday after the Chinese supervisory authorities had announced a flat-rate ban on all crypto transactions and mining.

China's step triggered a sale at Bitcoin, which the value of the worldwide largest cryptocurrency fell by more than 5 % to about 42.475 US dollar.

Ark Innovation fell by 1.4 % on Friday.

The declines are due to the fact that several of this year's top positions of Wood have stalled during a market clock that has pressed the benchmark S&P 500 up to date by more than 18%.

While the shares of Tesla Inc, Woods Top-Holding, rose by 8 % in the course of the year, large positions in companies such as Teladoc Health Inc and Zoom Video Communications Inc have decreased by 20 % or more in the same period, because they move away from the further catering-home technology shares that dominated during the covid-19 locks from 2020.

Ark Invest did not react to a request for comment on this story.

Overall, the ARK Innovation Fund has dropped by 4.4% in the previous course of the year and, according to Morningstar, is therefore among the 595 other US growth funds with medium market capitalization.

In the past five years, however, the fund has risen by 42.3 % and is therefore one of the first 1 percentiles in its category.

This strong long -term performance is probably the reason why private investors are held away from the fund in spite of the poor results this year, said Todd Rosenbluth, Director of Fund Research at CFRA.

"Arkk is declining over the course of the year and is clearly behind index-based growth ETFs, but most investors have remained loyal, probably due to good memories of previous periods with relatively strong performance," he said. "But since the latest phase of underperformance lasts, it is more difficult to justify not to consider any alternatives."

A look at all business events of today can be found in our economic calendar.

(Reporting by David Randall in New York; additional reporting of Saqib IQBAL Ahmed in New York; editorial team of IRA IoseBashvili and Matthew Lewis)