Summary
- I'm maintaining a Hold on the ARK Blockchain & Fintech Innovation ETF (ARKF): elevated volatility, weak technicals and unconvincing valuation balance the bull and bear cases.
- ARKF tracks Bitcoin closely; crypto weakness, higher rates and soft fintech investment threaten sentiment and potentially profit growth.
- ARKF has fallen below $45 resistance and straddles a declining 200-day moving average, leaving room for a move toward $36 support.
- ARKF's thematic exposure is concentrated despite sector diversification, while its 0.75% expense ratio and 0.10% yield diminish its appeal to income investors.
Bitcoin plunged, first amid the tech wreck that began in early October, and second following a key technical breakdown below its 200-day moving average. Cryptocurrencies faced intense headwinds during Microsoft Corporation's (MSFT) Office outage last week, and
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