ARK ETFs slid with the crypto market as Coinbase and Roblox weighed
The crypto market’s drop in the fourth quarter of 2025 hit ARK Invest’s exchange-traded funds and showed how closely the ETFs’ performance is tied to digital assets.
In a quarterly report that became widely available on Jan. 14, the manager showed that crypto-linked stocks accounted for most of the decline. The biggest source of pressure was Coinbase, which weighed on results across several funds, including the ARK Next Generation Internet ETF (ARKW), ARK Fintech Innovation ETF (ARKF) and ARK Innovation ETF (ARKK).
According to the report, Coinbase shares fell more than the largest cryptocurrencies. ARK attributed the gap to a 9% quarter-over-quarter drop in spot volumes on centralized exchanges after a liquidation-driven spike in October. Coinbase, meanwhile, has continued to pitch long-term plans. At a product event, the exchange said it wants to issue onchain stocks, expand prediction markets, launch an AI portfolio assistant and broaden features across the Base ecosystem.
Roblox was the second-biggest detractor for ARK’s funds. The company posted a strong third quarter, including a 51% year-over-year jump in bookings, but warned that operating margins in 2026 would narrow as it increases spending on infrastructure and safety. ARK tied much of that to Russia’s decision to ban the platform on child-protection grounds, estimating the move affected about 8% of the service’s daily audience.
By ARK’s estimate, crypto exposure in its portfolios now stands at about 13.7% in ARKW, 14.6% in ARKF and 7.4% in ARKK. Beyond Coinbase and Roblox, other notable digital-asset-adjacent positions include Robinhood, Circle and Block, along with spot bitcoin exposure through the ARK 21Shares Bitcoin ETF.
Over the quarter, Coinbase shares fell from $346 in early October to $226 at year-end. That is roughly a 35% drop, based on market data cited in the report. Over the same period, bitcoin slid 22% and ether fell 28%.
Even so, Wall Street analysts have upgraded Coinbase, betting on a rebound in crypto stocks in early 2026.
Cathie Wood has kept her approach intact, continuing to add to Coinbase and other crypto-related stocks during market pullbacks.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
