Ark Invest explains the reason for bottom-fishing HOOD: trading revenue fluctuation is normal, the real highlight lies in the Gold subscription service.

According to Odaily, Cathie Wood's fund Ark Invest has recently made significant purchases in a certain exchange. Nick Grous, Research Director at Ark Invest, posted on X today stating that trading revenue is inherently cyclical and highly influenced by market conditions. Focusing only on this data could cause one to miss the real major changes.

The most important story for this exchange at present is its subscription service Robinhood Gold, which is a mechanism that continually draws users deeper into the exchange's ecosystem. As of the first quarter of this year, the penetration rate of Gold among funded users had reached 15.8%, and 40% of new users directly opted to subscribe to Gold upon registration. In the long term, as more Gold-exclusive services become available, a more stable, sustainable, and market sentiment-resistant revenue base will be formed. This is at the core of the exchange's evolution from a single brokerage platform to a "financial super app," and this flywheel is still in its very early stages.

Previously, it was reported that the exchange's first-quarter financial report released last month fell short of market expectations, leading to a single-day stock price drop of 13%. However, Ark Invest took advantage of this decline to make large purchases, spending approximately $39.7 million to acquire over 550,000 shares of HOOD, which were then added to three flagship funds: ARKK, ARKW, and ARKF. Currently, this stock has become one of the top six holdings in these three funds, accounting for about 3% of each.