The ARK Innovation ETF (NYSE: ARKK), the flagship ETF managed by Cathie Wood’s ARK Investment Management, has exited its position in DraftKings (NASDAQ: DKNG).
This gaming stock was among nearly a dozen others that were either sold off or reduced in the first half of 2026 across ARKK and several other ETFs managed by ARK, as the firm shifted focus toward investments in artificial intelligence (AI), semiconductor, and space sectors.
The ARKK ETF, valued at $7.26 billion, along with two other funds from ARK Invest, were early adopters of DraftKings, acquiring shares soon after the company’s IPO in early 2021. At various intervals throughout DraftKings’ public trading history, ARK was one of its top institutional shareholders.
After initiating investments in DraftKings stock in February 2021, ARK primarily specializes in actively managed ETFs—this classification applied to ARKK, allowing for the potential of DraftKings shares to return in the ETF at a later date.
ARKK Maintains Diverse Prediction Market Exposure
While fund managers are not mandated to explain their investment decisions, some do share insights. As for ARK Invest’s recent actions concerning DraftKings, the Florida-based investment firm has not provided explanations regarding the removal of DraftKings from its largest ETF.
Despite this, ARKK continues to have exposure to the betting industry through various prediction markets. Notably, Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD) rank among the top 10 holdings in the ETF.
Furthermore, ARK has invested in Kalshi, participating in two recent funding rounds for the prediction market operator. Although Kalshi is a private entity, it is included in the lineup of the ARK Venture Fund—a closed-end fund that invests in both private and public firms. Kalshi ranks as one of its top 10 holdings.
Previous communications and research from ARK affirm the firm’s positive outlook on prediction markets, yet it has not expressed a negative stance toward sports betting. Additionally, DraftKings remains a significant player in the prediction market arena.
DraftKings Retained in Other ARK ETFs
Data from the ETF Research Center indicates that almost 150 ETFs hold shares of DraftKings. Although ARKK is not among them, two other ARK ETFs continue to possess shares of the gaming company.
As of now, the $1.81 billion ARK Next Generation Internet ETF (NYSE: ARKW) has allocated about 1% of its portfolio to DraftKings, while the ARK Blockchain & Fintech Innovation ETF (NYSE: ARKF) holds close to a 2% stake in the stock.
Like ARKK, these ETFs are actively managed, granting fund managers the flexibility to adjust their stakes in DraftKings and other investments as needed.