Cathie Wood’s main exchange-traded funds showed signs of stabilizing in early trading on Wednesday, even as data revealed investors pulled a record amount of cash during this week’s tech selloff.

The flagship ARK Innovation ETF (ticker ARKK) traded higher in pre-market after the worst two-day drop since September. Investors withdrew $465 million from the product on Monday, according to data compiled by Bloomberg. They also took $202 million from the ARK Genomic Revolution ETF (ARKG) and $119 million from the ARK Next Generation Internet ETF (ARKW).

Those outflows came as some of Ark Investment Management’s most high-profile bets like Tesla Inc. and Bitcoin floundered earlier in the week. The electric car maker was also up ahead of the open Wednesday, while the largest cryptocurrency climbed back above $50,000.

Wood’s ETFs were battered alongside U.S. tech shares as rising bond yields and the prospect of returning inflation rattled investors and spurred caution about the priciest-looking corners of the stock market. Tesla—Ark’s largest bet—was ensnared in the turmoil, wiping out its year-to-date gains.

However, as of Wednesday futures on the Nasdaq 100 Index were pointing higher. The underlying gauge erased most of a 3.5% slide a day earlier. Wood told Bloomberg Radio on Tuesday she welcomed the correction, and that she was using it to buy more shares of the electric carmaker.

“It was absolutely certain that some of the money that raced in was going to be frothy performance chasing,” said Dave Nadig, chief investment officer at data provider ETF Trends. “When the dust settles in a few days or weeks, we’ll still see Ark with an enormously bigger pile of AUM then they had say a year ago.”

While the outflows are a fraction of Ark’s assets under management—its ETFs held more than $60 billion as of last week—the exits are unprecedented in the short history of the firm, which Wood founded in 2014. The outflow from ARKK was more than triple its previous record.

Flagship Ark ETF sees record outflow amid two-day rout
ARKK’s decline and the withdrawals have cut assets by about $3 billion from the end of last week to $25.2 billion, the data show.

After its stellar run of inflows and triple-digit returns in 2020, bearish bets have been mounting in the ETF. Short interest has risen to more than 3% of the available shares in the fund, according to data from IHS Markit Ltd., the highest on record.

With assistance from Katie Greifeld and Claire Ballentine.

This article was provided by Bloomberg News.