Coinbase's stock price fell to a new low, and the Ark Innovation Fund under the "female stock god" fell nearly 10% this year

COIN stock fell to a low of $255.15, threatening to fall below the reference price of $250 on the eve of its public listing on April 14. COIN has been on a downward trajectory since its first day of trading. The company's current total market value is $48.7 billion, about half of its peak market value of $100 billion achieved last month.

Mike Bailey, head of research at FBB Capital Partners, told Bloomberg that the Coinbase sell-off was largely due to the formation of a “mini bubble” that is now bursting.

He said: "We saw a small bubble in SPACs, IPOs, cryptocurrencies, clean technology and high-growth sectors in late 2020 and early 2021. Since January 1, the cryptocurrency market has more than tripled, with Bitcoin, Ethereum and many other leading altcoins setting new records."

Of course, cryptocurrencies are not without their extreme price volatility. The market lost hundreds of billions of dollars between April 17 and 23, with Bitcoin falling to around $47,000, a key support level. Bitcoin quickly recovered to re-cross $50,000 and eventually reach $57,000.

The COIN sell-off in recent days mirrors similar declines in the tech-heavy Nasdaq Composite Index. The Wall Street benchmark has fallen for five straight sessions and seven of the past eight sessions. The Nasdaq Composite has fallen more than 4% since closing at a record high of 14,138.78 on April 26.

ARK bought $246 million worth of COIN shares on its first day of listing on Coinbase. The three ETFs ARKK, ARKW, and ARKF managed by "female stock god" Cathie Wood bought more than 1.09 million COIN shares in two days, with a total market value of $352 million.

ARK Innovation has come under pressure as investors pull money out of growth and technology stocks, and is now down nearly 30% from its February high.

Morningstar data shows that the $23.1 billion fund rose less than 1% last month, nearly 3 percentage points lower than the average gain of similar funds. So far this year, the fund has fallen 9%, ranking 100th from the bottom among 543 mid-cap growth funds. The S&P 500 rose 10.9% during the same period. FactSet data shows that the Ark Innovation Fund had outflows of more than $290 million last week.

Among the factors weighing on the fund is that a strong U.S. economic recovery has boosted stocks in sectors such as financials and energy, making growth and technology shares that dominated last year less attractive.

“There has been a rotation away from the growth stocks that the fund favors and toward sectors that are more sensitive to the economy,” said Todd Rosenbluth, director of ETF and mutual fund research at CFRA. “We think if the underperformance continues for longer, some investors will become frustrated and look for alternatives.”