Crypto downturn drags on ARK ETFs as Coinbase weighs on Q4 performance

A slump in cryptocurrency markets during the fourth quarter of 2025 hit several ARK exchange-traded funds, highlighting their growing exposure to digital assets.

ARK’s quarterly report showed that crypto-linked equities were major detractors across its flagship funds.

Coinbase emerged as the largest performance drag on ARK ETFs including ARKW, ARKF and ARKK.

ARK said Coinbase underperformed major cryptocurrencies as trading volumes on centralised exchanges fell nine percent quarter on quarter.

The firm noted that Coinbase shares declined more sharply than both Bitcoin and Ether during the period.

“Despite hosting a product event that showcased its long-term strategic ambitions, market conditions remained challenging,”

ARK said.

Roblox was the second-largest detractor after its shares fell despite strong third-quarter bookings growth.

Roblox warned that operating margins would decline in 2026 due to increased spending on infrastructure and safety.

The stock also faced pressure after Russia banned the platform over child safety concerns, impacting part of its user base.

Crypto-related holdings now account for roughly 13.7 percent of ARKW, 14.6 percent of ARKF and 7.4 percent of ARKK.

Other crypto-linked exposures include Robinhood, Block, Circle Internet Group and spot Bitcoin exposure via a dedicated ETF.

Coinbase shares fell nearly 35 percent between October and year-end, compared with smaller declines in Bitcoin and Ether.

Despite the weak quarter, Bank of America recently upgraded Coinbase to a buy rating, citing its expanding onchain ambitions.

At the time of reporting, Bitcoin price was $96,758.28.