Fund manager Cathie Wood is widely followed for the moves she makes in the Ark Funds. An addition from Monday is up big on the news and could be the first added in a high growth industry.
What Happened: On Monday, shares of DraftKings Inc DKNG were added to the Ark Next Generation ETF ARKW.
The fund added 620,300 shares, representing 0.5% of the assets in the fund. Ark has a tendency to make small initial investments and then add on several occasions. This was a rather large first addition for the sports betting name.
Related Link: Cathie Wood Could Be Launching A Space Exploration ETF
Why It’s Important: Ark Funds analyst Nicholas Grous shared thoughts on the overall sports betting market growth that could have predicted the company adding exposure to the sector.
“Augmenting fantasy sports and e-sports, legalized online sports betting is giving companies – and the leagues themselves – an opportunity to offer exciting interactive experiences and generate new sources of revenue,” Grous said, according to casino.org.
While most analysts see the sports betting market hitting $15-$20 billion over the next several years, Ark is rather bullish on the growth.
“We believe revenues in the three sports betting categories combined could grow 31 percent at a compound annual rate from $9.5 billion last year to $37 billion in 2025," Grous said, adding that online sports betting could be worth $180 billion someday.
DraftKings is present in more states than any other competitor with the recent additions of Michigan and Virginia pushing the total to 12 states.
Benzinga’s Take: Given the massive market size projected by Ark Funds, the company could take a larger position in market leader DraftKings. Ark Funds could also add additional companies with exposure to the sports betting market.
Skillz Inc SKLZ was added to the Ark Funds ETFs to give exposure to sports betting and esports.
Shares of DraftKings are up 9% to $59.60 on Tuesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.