Cathie Wood Ditches DraftKings Stock Ahead Of NFL Season, Turns To Prediction Markets: 'Could Reshape The Way'

Ark Invest and Cathie Wood appear ready to place their bets on the winner in the sports betting market ahead of the 2025 NFL season.

Ark Selling DraftKings Stock

Throughout August, Ark Invest has been selling shares of DraftKings Inc DKNG across three ETFs multiple times, according to daily email updates.

The transactions in the Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF look like this:

• Aug 27: Sold 185,564 shares in ARKK, sold 51,332 shares in ARKW, sold 29,158 shares in ARKF
• Aug. 26: Sold 128,800 shares in ARKK
• Aug. 8: Sold 164,863 shares in ARKK, sold 56,360 shares in ARKW
• Aug. 7: Sold 155,217 shares in ARKK

These mark the first transactions involving DraftKings stock in months for Ark Invest.

After the transactions, DraftKings remains a significant piece of the ETFs, but on a much smaller scale. Here are the current ETF holdings:

• ARKK: DraftKings 2,112,929 shares, 1.4% of fund, 19^th largest position
• ARKW: 721,409 shares, 1.5% of fund, 23^rd largest position
• ARKF: 624,032 shares, 2.2% of fund, 17^th largest position

This marks a significant change from past years. For comparison, in 2023, DraftKings was the seventh-largest holding in ARKK (4.3%), the ninth-largest holding in ARKW (4.5%), and the third-largest holding in ARKF (7.0%).

Read Also: Cathie Wood’s Top 10 Stock Picks: Unpacking Ark Funds Innovation Picks For The Next Decade

Betting on Prediction Markets, Robinhood Stock

Over the years, Wood and the Ark Invest team have been bullish on DraftKings, citing its near duopoly in the sports betting sector and its ability to fend off competitors in the space.

That thesis could now be changing thanks to prediction markets like Kalshi and Polymarket, as well as the rise of prediction market partnerships with companies like Robinhood Markets HOOD.

Kalshi recently added over/under, spread and touchdown betting for NFL games in the 2025 season, increasing the ways that consumers on the platform can wager on NFL outcomes similar to online sportsbooks.

Robinhood also announced the launch of prediction markets for NFL games and NCAA Football games for the Power 4 conferences (ACC, Big Ten, Big 12, SEC).

“Robinhood could turbocharge the convergence between sports and financial markets,” Ark Invest recently said in an email.

“Robinhood’s prediction markets function more like tradable financial contracts than sports bets,” Ark Invest’s Nick Grous said.

Grous said DraftKings operates in 25 states and Washington, D.C., and needs regulatory approval in each state to launch, adding friction between operators and consumers.

“Robinhood and DraftKings have different economic models. Robinhood charges a flat $0.02 per contract traded, with transparent fees and outcomes based on market probabilities. In contrast, DraftKings and other sportsbooks embed their margin in the odds -typically between 4-6%,” he said.

Grous added Robinhood is giving consumers lower fees and broader access.

The 2025 NFL season could show that prediction markets have disrupted the segment or keep growth of new customers lower, or lead to higher promotional marketing spending as sportsbooks fight off the competition.

Robinhood is a top 10 holding in ARKK, ARKW, and ARKF, with Ark already investing in the company as a firm believer in the future of cryptocurrency. The stock now provides Ark with an opportunity to capitalize on the growth of cryptocurrency and prediction markets as the company reduces its exposure to DraftKings along the way.

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