Cathie Wood's ARKK ETF reportedly sees record short interest as investors turn against the fund

Cathie Wood's flagship fund ARK Innovation ETF (NYSEARCA:ARKK) has reportedly hit a new record in overall short interest against the exchange traded fund.
The investment community that once rallied behind Wood seems to be turning its back, as 12% of the shares traded on ARKK have been shorted, where traders are betting against the fund, as per the Financial Times.
While 12% may not seem high, it actually represents $2.7B of stock, which is way more than the $40M that ARKK saw in short interest just a year ago, the FT said.
Market participants are apparently growing wary about an ETF that's filled with high-flyer names such as Tesla (NASDAQ:TSLA), Coinbase Global (NASDAQ:COIN) and the latest addition of Robinhood Markets (NASDAQ:HOOD).
ARKK has been bleeding out funds, as it has seen $1.05B of net capital outflows over the last four months dating back to April 6, according to ETF Database.

Fueling the fire further is the recent filing from Tuttle Capital Management to launch the Short ARKK ETF (SARK), a new ETF that aims to track the inverse performance of ARK Innovation ETF.
As for ARKK, it's made some recent gains of late, rising 29.16% from its YTD low back on May 13.
However, the fund is still down 21.37% since peaking in mid-February. Moreover, ARKK is only ever so slightly positive for 2021, gaining just 0.87% YTD.
Daily price action for ARKK: -0.81% in pre-market trading.
Regardless of the naysayers, Wood continues to focus on ARK’s mission to identify and capitalize on what she believes are organizations that can help provide gains for her investors over a longer time horizon. For example, Wood has scooped up more than $3M of HOOD so far.