Bloomberg: Ark Funds Show Unusual Trading Linked to IPOs Like Klarna

Unusual trading patterns have been observed in Cathie Wood’s Ark Investment Management ETFs, coinciding with the resurgence of initial public offerings (IPOs), according to Bloomberg.com. Bloomberg News' ETF IQ newsletter highlighted this activity, describing a distinct pattern associated with highly anticipated public listings. Prior to major IPOs, including the potential Klarna listing, several Ark ETFs experienced a surge in share creations, as reported by the Financial Times and Bloomberg. Following the companies' public debuts, these same Ark funds underwent significant redemptions. The ETF IQ newsletter, a weekly Bloomberg News publication by Katie Greifeld focusing on the $17 trillion global ETF industry, details these observations. Analysis suggests a correlation between trading flows in and out of Ark funds and the timing of prominent market debuts, identifying this pattern as a recurring investment phenomenon. This cycle of pre-IPO share creation followed by post-IPO redemptions has garnered attention within the financial community, indicating a potential investment strategy linked to market debuts.