Ark's fund has been plummeting for days, betting on Coinbase which has dropped 30%. Cathie Wood: I love this kind of opening.

In recent years, the prominent Ark Invest has suffered consecutive blows, with its funds experiencing a nearly 30% decline since February, losing hundreds of millions in the past few days. Despite this, founder Cathie Wood remains calm and sees this as a good start.

Recently, U.S. Treasury Secretary Janet Yellen mentioned the potential for a rate hike in an economic forum, causing panic in the trading markets. Both the U.S. stock market and the currency market plummeted. Yellen later clarified that she did not predict or recommend a rate hike.

Prior to this, Ark's funds had been showing a gradual decline, and Yellen's remarks further intensified the downward trend. The decline has been close to 10% since May and approximately 20% to 30% since the peak on February 16th.

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Cathie Wood: I Love This Setup

Cathie Wood was interviewed earlier today, 5/8, on CNBC. The host asked whether she sees the recent pullback as a good long-term buying opportunity or if she's starting to feel the pressure of the market. She replied:

I love this setup. I remember mentioning last time I was on the show that this rotation is good news. It means the bull market is expanding and strengthening further. Since mid-February, ARK Invest's highest decline has been around 30 to 35%. In our view, nothing has changed except for the prices. We previously expected a 15% annual return, and now with the price drop, I expect the average annual return to reach 25 to 30%.

No Fear of Investor Redemptions

The host then mentioned that while Cathie Wood feels good about this setup, investors might not feel the same way. Isn't she worried about a wave of retail redemptions? Cathie Wood pointed out:

I'm not worried about redemptions. The structure of ETFs is a great tool for fund managers. Users are investing in our decisions, and it's not related to the flow of money. Looking at the monthly data, we haven't seen a significant amount of redemptions.

Continued Accumulation of Coinbase

ARK purchased nearly 750,000 shares worth $246 million of COIN on its first day of listing. ARK's funds ARKK, ARKW, ARKF collectively bought over 1.09 million shares within two days.

Despite aggressive buying, the market did not respond favorably. Coinbase's stock price hit a "temporary" bottom at $250.55 yesterday, marking a 35.71% decline since its listing.

Nevertheless, ARK continues to accumulate like "dollar-cost averaging," with seven consecutive days of buying COIN as of 4/23 and an additional purchase of around 85,000 shares on 4/27.

Overall, Cathie Wood remains firmly optimistic about the future market and expects the strategy of buying on dips to further reduce the cost basis, potentially achieving an average annual return of 25 to 30%, up from the previous estimate of 25%.

ARK Invest's webinar is scheduled for 5/11, where they may provide more insights into their recent strategies and address investor inquiries. Stay tuned for updates.