By David Randall

NEW YORK, (Reuters) – A collapse of cryptocurrency company Coinbase(NASDAQ:) Global Inc pushed stockpicker Cathie Wood’s ARK Innovation ETF down almost 8% on Wednesday. This puts it within 10% from its March 2020 low at the beginning of the coronavirus epidemic.

Coinbase, which is the fund’s 2nd-largest holding, was down more than 28% Wednesday to new records. This happened after Coinbase failed its quarterly estimates. Coinbase’s chief executive stated that there were no bankruptcy risks.

Wood’s ARK Innovation funds were also hit hard by Coinbase’s declines this year.

ARK didn’t respond to a request of comment.

Due to the strong portfolio of American companies, it outperformed other U.S. equity funds in 2020. Zoom Video Communications (NASDAQ:) Inc, Teladoc (NYSE 🙂 Health Inc who rallied in the midst of economic lockdowns caused by the pandemic.

Wood’s strong performance earned her a reputation as a celebrity and saw her on cover of magazines and receive billions in investment from retailers. However, some consider Wood to be the epitome for what is now known as the pandemic bubble.

ARK has fallen nearly 60% in the past year and is nearly 76% lower than its February 2021 high. The price was at $37.98 in mid-afternoon. This is 8.6% higher than its previous low of $34.69, which it reached in March 2020 when the Federal Reserve and Congress created an unprecedented $5.2 trillion for the country’s economic support.

Wood said Tuesday that the Fed’s aggressive rate-hiking policies at a moment when the world economy is experiencing what she considers a recession, were responsible for much of the fund’s loss.

Other investors, however, disagree. Matthew Tuttle of the $460 million Tuttle Capital Short Innovation Fund that shorts ARK’s portfolio blames Wood for his losses.

He stated that companies making no money can command high multiples in a zero rate environment, however, they cannot in an environment with rising interest rates.