ARK Invest to launch four “buffer ETFs” after losing billions
The post ARK Invest to launch four “buffer ETFs” after losing billions appeared on BitcoinEthereumNews.com.
After bleeding billions from its flagship funds, Cathie Wood’s ARK Investment Management is reportedly taking a defensive turn. It is entering into the booming “buffer ETF” arena with a fresh lineup of loss-limiting products. The firm filed proposals last week for four new exchange-traded funds, the ARK Q1, Q2, Q3, and Q4 Defined Innovation ETFs. These Exchange-traded funds are designed to cushion downside risks while limiting upside returns. Each product will follow a rolling 12-month strategy starting in January, April, July, and October, respectively. This space has turned out to be an investors’ hunt for protection in a slump while already being dominated by BlackRock, Allianz, and Innovator. 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. Source: Bloomberg. 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…
Filed under: News - @ July 8, 2025 10:24 am