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Bitcoin was down about 18% on Tuesday afternoon last week.

Dream time

Bitcoin and crypto-related stocks have fallen in price over the past week as China cracked down on cryptocurrency mining and banking. But an exchange-traded fund with large holdings of the digital currency made profits nonetheless.

The $ 5.8 billion

Next Generation ARK Internet ETF

(Ticker: ARKW), led by Star fund manager Cathie Wood, is one of the ETFs with the most bitcoins in its portfolio. This is no surprise, as Wood famously said that the digital currency would go up to $ 500,000.

On Tuesday, the fund had a 3.6% weighting, or $ 207 million in stocks

Grayscale Bitcoin Trust

(GBTC), a closed-end fund that holds Bitcoin for its shareholders. The ETF also had a 3.3% weight or $ 189 million worth of stocks on the cryptocurrency exchange

Coin base

Global (COIN)

These holdings weigh on the fund in light of Bitcoin’s heavy losses. Early Tuesday, the cryptocurrency fell below $ 30,000 for the first time since January, but later rebounded to around $ 32,500, a loss of about 18% over the past week. Coinbase is down 4% during that time.


Next Generation ARK Internet ETF,

however, rose 4.6% over the same period, up 1.7% on Tuesday alone. One positive factor is that the Grayscale fund, which was already trading at a discount to Bitcoin, has not fallen as much as the cryptocurrency itself.

The ARK Fund’s extensive stakes in other innovative Internet stocks also limited the damage. His second largest participation,


(SHOP) for example is up 14% in the past week. Other significant holdings such as Roku (ROKU),


(TWLO), and

Unity software

(U) gained 19%, 12% and 13% respectively.

All of these stocks struggled earlier in the year as cyclical stocks rose in popularity and inflation worries flared, but they have been on a steady rally since mid-May.

Bitcoin is only up 13% over the year and has lost more than half of its value since Coinbase hit its record $ 64,829 on the day of its IPO in April. The ARK Next Generation Internet ETF is now just below its level at the beginning of the year. At its low for 2021 in mid-May, the fund lost 16% year-to-date.

Write to Evie Liu at evie.liu@barrons.com