One notable example is the ARK Innovation ETF (ARKK), which saw its shares rally from a pandemic low of $33 to almost $160 in February 2021, only to plummet back down to their March 2020 levels. The fund is down a staggering 80% from its all-time high and 67% in 2022 alone. Meanwhile, the AXS Short Innovation Daily ETF (SARK), which bets on the stocks in the ARK Innovation portfolio falling, is up almost 86% this year.
Another area that has suffered in 2022 is special, purpose acquisition companies (SPACs), which have been a popular way for private companies to go public. However, new SPAC issuance was down significantly in the first half of the year compared to the previous year, and this trend is likely to have continued throughout the rest of 2022. In fact, the median post-merger SPAC company that went public this year is down a staggering 70%.
Cryptocurrencies have also had a rough year, with major players like bitcoin and ethereum down more than 60% and smaller "altcoins" faring even worse. Stablecoins, which are meant to be pegged one-to-one with the dollar, have also caused losses for investors as some crypto lenders have gone bankrupt. Overall, the total value of cryptocurrencies has dropped 65% year-to-date, falling from nearly $3 trillion in November 2021 to almost $800 billion today.
While it's uncertain if investors in ARK Innovation, SPACs, and cryptocurrencies will ever recoup their losses, the struggles in the mainstream stock and bond markets in 2022 may lead to better returns in the future.
ARK Innovation ETF Plummets in 2022
The ARK Innovation ETF (ARKK) has had a rough year in 2022, with its shares falling from their February 2021 peak just shy of $160 to their March 2020 bottom. The fund is down a staggering 80% from its all-time high and 67% in 2022 alone. This has been a boon for the AXS Short Innovation Daily ETF (SARK), which bets on the stocks in the ARK Innovation portfolio falling. The SARK fund is up almost 86% this year.
SPACs Struggle in 2022
Special purpose acquisition companies (SPACs) have been a popular way for private companies to go public, but they have struggled in 2022. New SPAC issuance was down significantly in the first half of the year compared to the previous year, and this trend is likely to have continued throughout the rest of the year. In fact, the median post-merger SPAC company that went public this year is down a staggering 70%.
Cryptocurrencies Struggle in 2022
Cryptocurrencies have had a rough year in 2022, with major players like Bitcoin and Ethereum down more than 60% and smaller "altcoins" faring even worse. Stablecoins, which are meant to be pegged one-to-one with the dollar, have also caused losses for investors as some crypto lenders have gone bankrupt. Overall, the total value of cryptocurrencies has dropped 65% year-to-date, falling from nearly $3 trillion in November 2021 to almost $800 billion today.
