Cathie Wood's ARK Funds Triple Down on Crypto Rebound: Here's What She's Buying Now

Cathie Wood's ARK funds have delivered remarkable market-beating performance in 2025, setting the stage for bold moves into 2026. With a focus on innovation and disruption, her recent trades reveal a strategic bet on a cryptocurrency rebound and renewed interest in key tech sectors.

ARK's Stellar 2025 Performance

ARK Innovation ETF and ARK Next Generation Internet ETF have surged approximately 40% this year, significantly outpacing the S&P 500's 18% gain. This marks the third consecutive year of outperformance for the Next Generation Internet fund, highlighting ARK's consistent edge in high-growth investments.

Top holdings in these funds include:

• Tesla
• Roku
• Advanced Micro Devices
• Shopify
• Robinhood Markets
• Coinbase Global

While Wood has made small sales of Tesla stock, these are likely portfolio management adjustments rather than a bearish signal on the company.

Betting Big on a Crypto Comeback

ARK's recent purchases suggest a strong conviction in a cryptocurrency rebound for 2026. In December, amid a brutal selloff triggered by Bitcoin's slump from over $126,000 to below $88,000, ARK funds aggressively bought nearly $50 million in crypto-exposed equities in a single day. Key buys include:

• Coinbase Global
• Circle Internet (stablecoin company)
• Bullish (CoinDesk owner)
• Bitmine Immersion Technologies (Ethereum treasury company)
• Robinhood Markets (amid a 13% December decline)

This move signals confidence in the crypto sector's recovery despite recent volatility.

Re-engaging with Chinese Tech Giants

ARK has also reversed its 2021 divestment trend in Chinese stocks, piling back into megacap tech names. Notable investments include:

• Alibaba Group: Purchased in September for the first time since 2021, with an initial surge of over 8%, though ADRs have since declined 14%.
• Baidu
• WeRide (Chinese robo-taxi company)

This shift reflects a renewed optimism in China's tech sector after regulatory crackdowns eased.

A Word of Caution for Investors

While ARK has crushed the market recently, it's not immune to downturns. In 2022, the Innovation ETF tumbled 67% compared to the S&P 500's 19% drop, underscoring the high-risk, high-reward nature of these investments. With concerns over an AI bubble and crypto pressure, investors should remain vigilant.

ARK's moves offer a glimpse into future trends, blending crypto optimism with strategic tech bets as 2026 approaches.