ARK Shifts Portfolio to Crypto, Bets Blockchain Drives Next Innovation Wave

Cathie Wood's ARK Innovation ETF (ARKK) has revealed that Coinbase Global Inc. and Robinhood Markets Inc. now account for 5.8% and 4.69% of its holdings, respectively, according to recent disclosures. This comes as ARK Invest's broader crypto exposure across three of its flagship funds has surged to over $2.15 billion, reflecting a strategic shift toward blockchain-linked assets amid a rebound in digital-asset markets, according to a CoinDesk report.

The firm's three primary funds-ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Frontier Tech ETF (ARKF)-have collectively increased their allocations to crypto-related investments. ARKF leads with 29% of its portfolio tied to crypto assets, followed by ARKW at 25.7% and ARKK at 17.7%. This growth underscores ARK's pivot from traditional tech stocks, with the firm trimming positions in companies like Palantir Technologies Inc. and Shopify Inc. to reinvest in crypto infrastructure, the CoinDesk report noted.

A significant portion of the exposure is concentrated in Coinbase and Robinhood, two major cryptocurrency trading platforms. Coinbase alone holds over $675 million across all three funds, while Robinhood's stake is also substantial. Additionally, ARK has expanded its holdings in stablecoin issuer Circle Internet Financial Ltd. and staking products for ether and solana through ETFs such as ETHQ/U and SOLQ/U. These moves align with Wood's long-term bet on blockchain adoption and institutional interest in crypto derivatives, according to CoinDesk.

The shift highlights a broader trend in asset management, where crypto-related investments are increasingly viewed as a core component of growth portfolios. ARK's filings also note exposure to Tether Ltd.'s stablecoins, which the firm has been monitoring closely as the stablecoin issuer reported $10 billion in net profits for the first nine months of 2025 and initiated a share buyback program, the CoinDesk report added.

Despite regulatory uncertainties, ARK's strategy appears to be paying off. The firm's crypto-linked assets have outperformed traditional tech holdings in recent months, reinforcing Wood's thesis that blockchain technology will drive the next wave of innovation. However, analysts caution that the sector remains volatile, with recent gains partly attributed to macroeconomic factors rather than fundamental improvements in crypto adoption, CoinDesk observed.