A fourth-quarter crypto downturn exposed how closely ARK’s flagship ETFs are now tied to digital assets, with Coinbase and Roblox emerging as the biggest performance drags.
A pullback in crypto markets during the fourth quarter of 2025 weighed on several of Cathie Wood’s ARK exchange-traded funds (ETFs), revealing that the firm’s flagship funds are sensitive to digital asset performance.
According to ARK’s quarterly report released Wednesday, weakness in crypto-linked equities, led by Coinbase, emerged as a key drag on performance. The exchange was among the biggest detractors across ARK funds, including the ARK Next Generation Internet ETF (ARKW), ARK Blockchain & Fintech Innovation ETF (ARKF) and the ARK Innovation ETF (ARKK).
Coinbase’s shares declined more sharply than major cryptocurrencies during the quarter, underperforming both Bitcoin (BTC) and Ether (ETH) as spot trading volumes on centralized exchanges fell 9% quarter-on-quarter following October’s liquidation event, ARK noted.
