Cathie Wood‘s ARK ETFs experienced an extraordinary surge Tuesday, propelling assets under management to nearly $13 billion and marking a staggering $600-million increase in a single day.
The impetus for the surge came from a widespread rally in both crypto-related and electric vehicle stocks. Ark ETFs boast a diversified portfolio, comprising eight exchange-traded funds. Cathie Wood’s flagship fund, ARK Innovation ETF (NYSE:ARKK), gained 5.34% and saw its AUM rise by nearly $400 million to $7.3 billion.
On Tuesday, the U.S. Court of Appeals for the D.C. Circuit ruled in favor of Grayscale in a lawsuit against the Securities and Exchange Commission, vacating the SEC’s rejection of Grayscale’s Bitcoin ETF application.
The triumph was like pouring gasoline on a fire, igniting a 7% surge in Bitcoin (CRYPTO: BTC)’s value and double-digit gains for crypto-related stocks such as Coinbase Global Inc. (NASDAQ:COIN), Marathon Digital Holdings, Inc. (NASDAQ:MARA) and Riot Platforms Inc. (NASDAQ:RIOT).
Tesla, Inc. (NASDAQ:TSLA), the largest holding within Wood’s Ark funds, experienced a resurgence of 7.3% on Tuesday, registering its most substantial session since March 21, 2023. This uptick further fueled the momentum behind the ETFs’ outstanding performance.
In an interview with Jason Raznick to be aired at 2 pm ET Wednesday, Wood affirmed her conviction that Bitcoin has the potential to reach $1 million within the upcoming five to seven years. Additionally, Wood highlighted her belief that the cryptocurrency will evolve into a pertinent topic during next year’s presidential elections.
Ginkgo Bioworks Holdings Inc. (NYSE:DNA) emerged as the standout performer among Ark ETF holdings, achieving a remarkable surge of over 24%. The rally followed the announcement of a five-year partnership with Alphabet Inc. (NASDAQ:GOOGL)’s Google Cloud that aims to leverage Ginkgo’s expertise to develop and deploy artificial intelligence tools for advancements in biology and biosecurity.
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Edited by Arnab Nandy