Cathie Wood Doesn't Need Tesla To Win—ARKK Delivers A Blowout While EV Giant Idles

During the pandemic-fueled boom of 2020, Cathie Wood’s Ark Innovation ETF ARKK was one of the hottest funds on Wall Street, surging nearly 400% off its March 2020 lows. But that euphoria peaked in February 2021.

As inflation surged and interest rates spiked, ARKK plunged nearly 80% from its highs, battered by collapsing valuations and waning demand for unprofitable growth stocks.

Nowadays, it remains 50% lower than its February 2021 peak, yet the tide appears to be turning.

ARKK has soared 50% in just the last three months, marking its strongest rally since 2021. That’s nearly double what the S&P 500 – as tracked by the Vanguard S&P 500 ETF VOO – did in the same period.

But this time, the engine of that rally isn’t Tesla Inc. TSLA—ARKK’s largest holding.

The electric vehicle giant is down 18% year-to-date, as investors grow uneasy over the increasingly tense dynamic between CEO Elon Musk and President Donald Trump.

Instead, the gains are being driven by a new group of high flyers: Coinbase Global Inc. COIN, Roblox Corp. RBLX, Robinhood Markets Inc. HOOD, Roku Inc. ROKU, and CRISPR Therapeutics AG CRSP.

Top Contributors To ARKK’s Comeback

Crypto Tailwinds, Deregulation Agenda Fuel ARKK’s Comeback

Coinbase’s 88% surge over the past three months has been a key driver of ARKK’s rebound, mirroring a powerful resurgence in crypto markets. Bitcoin BTC/USD hit an all-time high of $123,278 in July 2025, lifting the total crypto market cap to $4 trillion.

Fueling this breakout was the GENIUS Act—a landmark stablecoin regulation which offers a federal framework for stablecoin use in payments, remittances and e-commerce, giving long-awaited clarity and legitimacy to the digital asset ecosystem.

But beyond crypto, the market’s rally since the April tariff-driven dip and Trump’s broader deregulatory push has spotlighted a new standout in ARKK’s portfolio: Robinhood Markets Inc.

“Robinhood’s stock has been on fire this year, and the story here is centered around deregulation,” said analyst Michael Gayed in an emailed comment.

He highlighted the Trump administration’s proposal for “Trump Accounts”—tax-deferred investment accounts for newborns, seeded with $1,000 in index-tracking funds and allowing families to contribute up to $5,000 annually.

With about 3.7 million U.S. births per year, Gayed sees major potential for platforms like Robinhood to capture a new generation of retail investors.

Already serving 26 million users, Robinhood is seen as one of the biggest policy beneficiaries in this deregulation cycle.

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