Cathie Wood's ARK Innovation ETF Records Its Best Session In 2 Months: Here's Why — It's Not Just Due To Bitcoin's Credit

Cathie Wood’s ARK Innovation ETF ARKK witnessed an impressive 3% surge on Tuesday, signaling its strongest session performance since late August.

Just a day before, the flagship fund of the ARK ETF family had plumbed its lowest levels since early May, sparking concerns among investors.

But the ETF made a stunning recovery, with several factors contributing to its resurgence.

Chart: ARKK ETF Rallied On Its Strongest Day Since Late August

The primary driver of ARKK’s comeback was the resurgence of optimism surrounding the approval of a Bitcoin ETF. Bitcoin-related Coinbase Global Inc. COIN, whose weight in the ARKK fund is 8.8%, played a pivotal role in bolstering the ETF’s daily performance.

It’s essential to note the ETF’s impressive performance cannot be solely attributed to the crypto exchange’s rally.

Excluding Meta Platforms Inc. META, all other 32 stocks that make up the ARK ETF ended the day in the green on Monday, indicating a broader recovery across its portfolio.

Tesla Inc. TSLA, ARKK ETF’s top holding with nearly 9% weight, played a key role in the ETF’s revival by rising 2%. This move alone contributed about 0.2 percentage points to ARKK’s daily performance. UiPath Inc. PATH also chipped in with a 0.2 percentage point boost.

Another noteworthy contributor to the ETF’s surge was Roblox Corp. RBLX, which rallied over 7% in its best session performance since April, on the heels of a bullish note from Stifel analyst Drew Crum.

DraftKings Inc. DKNG also experienced a robust upswing, surging 3.7% and contributing an additional 0.15 percentage points to ARKK’s daily performance. Analysts at Bank of America have high expectations for the gaming giant’s third-quarter results, which are set to be announced next week.

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