ARK Invest Doubles Down: Launches Four High-Stakes ’Buffer ETFs’ Following Billion-Dollar Setback
ARK Invest—Cathie Wood's innovation juggernaut—just pivoted hard after a brutal crypto winter. Their new play? Four 'buffer ETFs' designed to soften future blows. Because nothing says 'lesson learned' like doubling down on structured risk.
Wall Street's favorite disruptors aren't retreating—they're reloading. These ETFs promise capped upside in exchange for (theoretical) downside protection. Perfect for investors who enjoy hedge fund complexity with extra steps.
One insider quipped: 'When you lose billions, you either fold or reinvent the wheel—preferably one with guardrails.' The market's watching to see if these vehicles crash or cushion ARK's next act.
Ark bets big on buffer ETFs
According to the report, the proposed ETFs will aim to shield investors from around 50% of any decline in ARKK while offering full exposure to gains above a 5% threshold. ARKK is Ark’s $6.8 billion flagship innovation fund. It is expected that the buffer ETF market led by BlackRock could hit $650 billion by 2030.
It added that assets in defined-outcome ETFs have already hit $69 billion in 2025. In an environment marked by rate volatility, trade tensions, and rising geopolitical risks, downside protection is becoming a hot commodity.
Traditional, crypto, and all sorts of markets are already dealing with massive fluctuations led by an indecisive situation created by US President Donald Trump. In the fresh trade threats, TRUMP has set 14 countries on the list. This includes key US allies Japan and South Korea, on notice to face a 25% to 40% increase from August 1.
ARK’s timing isn’t accidental as it is racking up strong returns in 2025. ARKK is up 50% over the past 12 months, and ARKW, the firm’s internet-focused fund, has gained 80%. The report mentions that the retail enthusiasm seems to be drying up as ARKK is now on pace for its 19th straight month of net outflows. It has shed $2 billion in the past year. ARKK price saw a minor decline in the last trading session. It traded around $70.44.
“These are like Diet Ark,” stated Eric Balchunas of Bloomberg Intelligence. “Investors want the kick, but without the sleepless nights.”
Cathie Wood rebalances Ark Invest
The buffer ETF push comes as Ark looks to fine-tune its core positions. On July 7, the firm added 659,428 shares of BEAM Therapeutics (BEAM), approx. worth over $13 million. Meanwhile, it scaled back on Ionis Pharmaceuticals (IONS), 908 Devices (MASS), and Roblox (RBLX), too. It sold 12,143 shares of IONS (approx. worth $522K) through the ARKG ETF.
Spot Bitcoin ETFs posted a total net inflow of $217 million on July 7. This marks three consecutive days of net inflows, suggesting stable market conditions. However, ARK 21Shares Bitcoin ETF (ARKB) reported an outflow of $10.07 million in the same session. This comes in when ARKB saw a massive inflow of $114.25 million on July 3 (previous trading session).
Bitcoin price dropped marginally over the last 24 hours. BTC is trading at an average price of $108,382 at press time. It is still up by 87% over the last year. Bitcoin’s 24-hour trading volume spiked by 19% to hit $47.25 billion.
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