Cathie Wood, chief of Ark Investment Management, likes to double down on her favorite tech stocks when the prices are falling, hoping for a bargain.That’s what Wood just did, adding shares of Coinbase after weeks of tumbling.In 2025, Wood’s flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. But so far this year, Ark Innovation ETF (ARKK) is up just 0.33%, while the S&P 500 surged 7.43%, Yahoo Finance data shows.Wood gained a reputation after Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.Those swings have weighed on Wood’s long-term gains. As of June 26, the Ark Innovation ETF has delivered a five-year annualized return of -8.89%, while the S&P 500 has an annualized return of 11.43% over the same period, according to data from Morningstar.Cathie Wood flags “the deflationary impact” of tech innovationWood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses have strong growth potential, though their volatility often causes fluctuations in the Ark’s funds.According to Morningstar analyst Bella Albrecht, two of Wood’s Ark funds were among the worst-performing ETFs in the first quarter of 2026. The Ark Next Generation Internet ETF (ARKW) ranked second on the list, while the ARK Innovation ETF placed fifth.
Over the past 12 months through June 24, the Ark Innovation ETF saw roughly $1.01 billion in net outflows.Getty Images
From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to a March 2025 analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst hasn’t updated her ranking.Wood believes investors have been focusing on the wrong signals as they assess the outlook for inflation, interest rates, and stocks.In a June 5 post on X, Wood said the bond market is increasingly reflecting the deflationary impact of technological innovation, particularly artificial intelligence, rather than the inflation risks many investors still fear.Related: Cathie Wood buys $52 million of surging tech stockWood pointed to the continued flattening of the Treasury yield curve despite a sharp rise in oil prices over the past year. In previous cycles, she noted, an energy shock of that magnitude would have pushed long-term yields higher. Wood believes the bond market is “discounting something much more powerful: the deflationary impact of technological innovation, particularly artificial intelligence, which is beginning to increase productivity across broad swaths of the economy. ”She also said easing tensions with Iran and a decline in oil prices could push inflation even lower.”The next phase of this cycle could be characterized by accelerating growth, declining inflation, falling interest rates, and a strengthening U.S. dollar,” Wood said. “That combination would create a remarkably supportive backdrop for innovation-led equities and the technologies driving the next productivity boom.”Not all investors agree with Wood’s optimism. Over the past 12 months through June 24, the Ark Innovation ETF saw roughly $1.01 billion in net outflows, according to data from ETF research firm VettaFi. Cathie Wood buys $11.5 million of Coinbase stockOn June 25 and 26, Wood’s Ark funds bought 77,380 shares of Coinbase Global (COIN), according to Ark’s daily trade information. These shares are valued at approximately $11.5 million based on the latest closing price of $149.06. Wood has made multiple Coinbase purchases throughout June, including 111,799 shares on June 17, 13,065 shares on June 5, and 17,698 shares on June 4. In total, she bought 219,942 Coinbase shares during this month. Before June, her last Coinbase purchase was in March.Related: Wall Street veteran warns of epic stock market crashCoinbase runs the biggest crypto exchange in the U.S. and generates revenue through transaction fees from cryptocurrency trading on its platform. Coinbase’s stock price is closely tied to the price of Bitcoin. When Bitcoin rises, trading activity usually picks up, which helps Coinbase through higher transaction revenue and better sentiment toward crypto stocks. When Bitcoin falls, trading slows, and Coinbase shares could face pressure.Year-to-date, Coinbase stock has plunged 34.09%, while bitcoin has tumbled 30.6%, both largely underperforming the S&P 500 index.But Wood has long been bullish on Bitcoin and Coinbase. In May, Wood reaffirmed her bullish forecast that Bitcoin could reach $1.25 million within five years. Even her bearish scenario projects Bitcoin around $750,000.”The bull case involves a substitution for gold,” Wood said during an interview with Fox Business. “So as generational wealth transfer takes place, we think that younger people are more prone to adopting a digital store of value. So that would be Bitcoin.”On June 16, Coinbase unveiled a broad expansion of its one-stop trading platform, including tokenized stocks for non-U.S. customers, AI-powered investment tools, stock portfolio transfers, and plans to add stock and crypto options trading. “In the next few months, we are bringing together our U.S. spot exchange, international derivatives exchanges, and Deribit into a unified, regulated global liquidity pool to give customers the most liquid spot, perpetuals, and options access in the world,” the firm said in a statement.Some Wall Street analysts share Wood’s bullish view on Coinbase. Rosenblatt analyst Chris Brendler calls Coinbase’s product expansion “impressive” and the upside potential “underappreciated,” The Fly reported.Brendler reiterated a buy rating and $240 price target on Coinbase shares, adding that the recent sell-off is “a buying opportunity.”Benchmark also reiterated a buy rating and $270 price target on Coinbase following the company’s update event. Benchmark said Coinbase is building a one-stop trading platform, adding that “the ambition on display was sweeping enough to put every brokerage, bank, and fintech in the country on notice.”Coinbase is currently the 10th holding in the Ark Innovation ETF.Top 10 holdings of the Ark Innovation ETF as of June 26, 2026:Tesla Inc. (TSLA) 9.59%Tempus AI Inc. (TEM) 5.58%CRISPR Therapeutics AG (CRSP) 5.08%Advanced Micro Devices Inc. (AMD) 4.82%Robinhood Markets Inc. (HOOD) 4.40%Shopify Inc. (SHOP) 4.31%Space Exploration Technologies Corp. (SPCX) 4.17%Twist Bioscience Corp. (TWST) 3.99%Beam Therapeutics Inc. (BEAM) 3.45%Coinbase Global Inc. (COIN) 3.44%Other than buying Coinbase shares, Wood’s latest trades included adding to positions in Circle Internet Group (CRCL), Space Exploration Technologies (SPCX), Palantir Technologies (PLTR), Cerebras Systems (CBRS), Recursion Pharmaceuticals (RXRX), X-Energy (XE), Robinhood (HOOD), and Bullish (BLSH). She also trimmed holdings in Roku (ROKU) and Alibaba (BABA).Related: Cathie Wood sells $16.2 million of tumbling megacap stock