Cathie Wood's Ark Empire Bleeds As Investor Outflows Spike: 'The Loyal Shareholders Have Become Frustrated'

Ark Invest's Decline:

• Ark Invest, led by Cathie Wood, managed $59 billion in early 2021 but faced an 80% downturn later.
• Factors contributing to the decline include high interest rates and disillusioned investors leading to significant outflows.

Fund Flows Comparison:

• In 2024, investors withdrew $2.24 billion from Ark's actively managed funds, nearly tripling the outflows seen in 2023.
• The ARK Innovation ETF experienced outflows exceeding $1.3 billion in less than four months this year.

Concerns and Performance:

• Concerns arise due to heavy concentration of funds in underperforming companies except for Coinbase and Robinhood.
• None of the other top 10 holdings in the Ark Innovation ETF yielded positive returns in 2024.

Short Strategies on Ark ETFs:

• Other ETF issuers have undertaken short strategies on Ark ETFs due to underperformance.
• AXS Investments launched the AXS Short Innovation Daily ETF SARK and AXS 2X Innovation ETF TARK to short ARKK with leverage.

Inflows and Trading Activity:

• AXS Short Innovation Daily ETF and AXS 2X Innovation ETF saw a spike in inflows following concerns about innovation-driving companies' financing.
• These two funds witnessed an 80% and 50% jump in trading activity, respectively, after the fallout of Silicon Valley Bank.