ARK ETFs Surged Last Week: Here's Why

Core Insights - Cathie Wood's ARK ETFs have experienced a significant rebound, with most ETFs surging approximately 8% last week, driven primarily by a 30% increase in Coinbase shares following its entry into the stablecoin market [1][10]. Performance of ARK ETFs - The ARK Innovation ETF (ARKK) has faced challenges in recent years, underperforming the S&P 500 after a sharp decline in 2021-2022, largely missing gains from NVIDIA and the AI boom [2]. - Since October of the previous year, ARKK has reached a three-year high, with notable performance from key holdings like Tesla, Palantir Technologies, Coinbase, and Roblox [3][4]. Key Holdings Performance - Coinbase shares surged about 30% last week, with ARK ETFs investing around 8% of their portfolios in COIN shares. The company generates most of its revenue through transaction fees from retail and institutional customers [5]. - Tesla's shares increased by over 2% last week due to optimism surrounding its robotaxi launch, with testing currently underway in Austin, TX [7]. - Roblox shares rose approximately 8.8% last week, outperforming the S&P 500 with a year-to-date increase of 73.5%. The stock's rise followed a strong Q1 earnings report, where revenues reached $1.21 billion, exceeding estimates [8][9].