Group 1 - ARK Invest purchased over $11 million worth of Robinhood shares after a significant decline in the trading platform's stock [1] - The firm also increased its exposure to its spot Bitcoin exchange-traded fund, ARK 21Shares Bitcoin ETF (ARKB) [1] - Robinhood experienced a broad slowdown in trading activity in November, with trading volumes declining across multiple asset classes [2] Group 2 - Crypto trading on Robinhood totaled $28.6 billion in November, a 12% drop from October, while equity trading fell 37% month over month to $202 billion [3] - The firm's total platform assets contracted by 5% to $325 billion in November, negatively impacting investor sentiment and causing HOOD shares to drop over 9% [3] - Despite the decline, Robinhood remains a core holding in ARK Invest's funds, ranking as the seventh-largest position in both the Ark Innovation ETF (ARKK) and the Ark Next Generation Internet ETF (ARKW) [4] Group 3 - ARK Invest's recent purchases included 96,048 shares of Robinhood for ARKK, valued at approximately $11.9 million, and an additional 28,379 shares for ARKW, worth about $3.5 million, totaling around $15.4 million [5] - The firm also acquired 13,700 shares of ARKB, valued at about $417,000, for its Ark Next Generation Internet and Ark Fintech Innovation funds [6] - Despite ARKB experiencing $16.4 million in net outflows, the firm continued to invest in Bitcoin, with Bitcoin trading near $90,160.13 at the time of purchase [6]

Core Viewpoint - Cathie Wood's Ark ETFs are currently underperforming, with four of the top ten worst-performing ETFs in November, raising questions about their investment strategy and stock selections [2][10]. Performance Analysis - The Ark Next Generation Internet ETF (ARKW) and the Ark Space & Defense Innovation ETF (ARKX) were the two worst-performing funds, with ARKW down 1.5% and ARKX down 0.07% [2][9]. - Key holdings in ARKW include Tesla, Advanced Micro Devices, and Bitcoin, which together make up 22% of the portfolio and have seen declines of 1.5%, 15%, and 14% respectively [5]. - In ARKX, two of the top three positions are down, with Archer Aviation dropping 10%, Rocket Lab down 13%, and AMD down 15% [7]. Long-term Performance - Despite recent underperformance, both ARKW and ARKX have shown strong long-term performance, with ARKW achieving an average annual return of 53% over the past three years compared to 14% for the S&P 500, and ARKX achieving over 29% [11]. - The recent slump in performance may present a buying opportunity for investors looking to capitalize on the potential for future gains from these historically strong performers [12].

Core Insights - Cathie Wood's Ark Invest has increased its investment in Robinhood Markets, acquiring $21.3 million worth of shares across two ETFs, indicating a strong belief in the digital asset ecosystem [2][3][4] Investment Strategy - The Ark Innovation ETF (ARKK) purchased 131,049 shares, while the Ark Next Generation Internet ETF (ARKW) added 36,440 shares, making Robinhood nearly 19% of both funds' total holdings [3][4] - Ark Invest is focusing on companies that bridge traditional finance and blockchain technology, reflecting a strategic shift towards firms enabling crypto adoption [8][9] Company Developments - Robinhood has evolved from a retail trading app to a significant player in the fintech and crypto space, recently acquiring WonderFi for $180 million and Bitstamp for $200 million to enhance its global presence [5][6] - The company is developing a Layer-2 blockchain on Arbitrum and has introduced BNB trading, attracting institutional interest due to its comprehensive ecosystem [7][8] Market Context - The global crypto market capitalization is approximately $3.76 trillion, with a slight increase of 0.4% over 24 hours, indicating a stable market environment [10] - Major cryptocurrencies like Bitcoin and Ethereum are showing positive movements, with Bitcoin trading near $108,897 and Ethereum at $3,838 [13]