Cathie Wood's Ark Invest Boosts AI, Crypto Bets; Cuts Roku, China Exposure
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
cathie-woodark-invest
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Ark Invest executed 37 trades across its flagship ETFs the week ending June 28, 2026. The firm’s investment team, led by Cathie Wood, directed significant new capital toward artificial intelligence and cryptocurrency holdings. It simultaneously reduced positions in Roku and several China-focused equities. The transactions were reported by Seeking Alpha on June 29, 2026.
Ark's weekly trade disclosures have historically served as a bellwether for growth investor sentiment toward disruptive technology. The last major portfolio pivot of this nature occurred in late January 2025, when Ark sold $180 million worth of Tesla shares to fund new positions in semiconductor and biotech firms.
The current macro backdrop features a 10-year Treasury yield stabilizing near 4.2%. The Nasdaq Composite has gained 12% year-to-date, led by AI infrastructure companies. This rally has compressed forward earnings multiples for many mega-cap tech names, making secondary AI and crypto plays relatively more attractive for aggressive growth strategies.
The immediate catalyst for the reallocation is likely twofold. First, the recent sell-off in crypto assets created a perceived buying opportunity for long-term believers. Second, escalating US-China trade tensions and new export controls on advanced semiconductors have pressured valuations for China-exposed tech stocks, prompting a risk reduction.
Ark purchased $44.7 million worth of Coinbase Global (COIN) shares across its ETFs. This represents its largest single-stock buy for the week. The firm also added $18.2 million to its position in UiPath (PATH), an automation software firm, and bought $12.5 million in shares of Twilio (TWLO).
The sell-side was led by a $31.8 million reduction in Roku (ROKU) stock. Ark also sold $28.4 million worth of the KraneShares CSI China Internet ETF (KWEB). The firm trimmed its holdings in Tesla (TSLA) by $15.2 million and in Zoom Video Communications (ZM) by $9.1 million.
Coinbase traded near $148 at the week's close, down 22% from its 2026 high but up 110% year-over-year. Roku traded near $62, underperforming the Invesco QQQ Trust's year-to-date return of 14%. The KWEB ETF has declined 8% this quarter, compared to a 3% gain for the S&P 500.
The trades signal a conviction that the next phase of the AI investment cycle will benefit software and infrastructure enablers like UiPath, rather than only chip designers. The crypto buys indicate Ark views recent regulatory clarity as a net positive for compliant, publicly-traded intermediaries like Coinbase over the long term.
Sector beneficiaries extend beyond Ark's direct purchases. The flow suggests bullish implications for other AI-adjacent software firms such as Palantir Technologies (PLTR) and CrowdStrike (CRWD). Semiconductor capital equipment providers like Applied Materials (AMAT) may see sustained demand.
A key risk is the concentration of these buys in assets with high volatility and sensitivity to risk appetite. A sharp rise in real yields or a growth scare could disproportionately hurt these positions. The counter-argument is that Ark is early, buying during a sentiment trough.
Positioning data shows hedge funds remain net short Coinbase, creating potential for a short squeeze on positive catalysts. Retail flow, tracked by Fazen Markets, has been mixed, with accumulation in AI ETFs but continued outflows from broad China equity funds.
The immediate catalyst is Coinbase's Q2 earnings report, scheduled for July 24, 2026. Investors will scrutinize trading volume and subscription service revenue for signs of crypto market recovery. For AI software names, the key event is UiPath's earnings on July 17, which will provide a read-through on enterprise automation budgets.
Technical levels to monitor include Coinbase stock holding above its 200-day moving average near $135. A break below could trigger further selling. For the ARK Innovation ETF (ARKK), the $52 level represents critical support; a sustained move above $58 would confirm the weekly buying momentum.
Regulatory developments remain pivotal. The SEC's final rulemaking on digital asset custody, expected by Q3 2026, will directly impact Coinbase's institutional business. Any de-escalation in US-China trade rhetoric would be a positive catalyst for the sold China internet stocks, potentially forcing Ark to reconsider its reduced exposure.
The purchase is a proxy bet on the broader crypto ecosystem’s growth, not a direct prediction of Bitcoin's short-term price. Ark’s thesis hinges on Coinbase scaling its stablecoin and blockchain infrastructure services. Historically, sustained institutional accumulation of COIN shares has correlated with improved sentiment for Bitcoin, but the relationship is not a direct causal link. Bitcoin’s price remains driven by macro liquidity, ETF flows, and network adoption metrics.
In Q4 2023, Ark was a consistent buyer of Coinbase as prices fell below $50, accumulating over $200 million worth of shares. The current buying, while significant, is at a much higher price point and constitutes portfolio rebalancing rather than building a core position from scratch. The 2023 buys were a deep-value contrarian bet, while the 2026 additions appear to be a growth conviction add after a sector correction.
Ark’s large-scale reallocations have a mixed record. Its decisive shift out of China internet stocks in early 2021 preserved capital ahead of a major sector downturn. However, its aggressive selling of Apple and Microsoft in 2020 to fund genomic stocks led to significant relative underperformance as mega-cap tech rallied. The success of the current pivot will depend on whether AI software and crypto equities outperform the trimmed consumer tech and China holdings over the next 12-18 months.
Ark Invest is doubling down on its disruptive tech thesis, explicitly favoring AI software and crypto intermediaries over consumer hardware and China-sensitive internet stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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