Fast-growing ETF Destiny seems destined for drama
Just a month ago, we introduced you to Destiny Tech 100, an ETF offering investment in private companies like SpaceX and Stripe. At that time, its shares were soaring — at one point trading 1000% above its debut price. But a lot can change in a month. The rollercoaster stock has plummeted ~86% from its peak in early April as startups and other funds take issue with Destiny’s practices.
- Tensions are rising as companies like Stripe and Plaid assert that Destiny doesn’t have permission to trade their shares — prompting Robinhood to halt investors from trading the fund.
- Meanwhile, competitors like Cathie Wood of ARK say Destiny could be “too good to be true” and believe her ARK Venture Fund better reflects the value of these private companies.
The private market expands: Investors want in on private companies, putting the market for private stocks on track to hit $64B this year — a 40% increase from last year (NYT). More funds like Stack Capital and Fundrise are emerging to facilitate investment in private startups — though Destiny’s closed-end structure lets investors buy in and cash out more easily. But with accessibility comes volatility, so this rendezvous with Destiny isn’t for the faint of heart.
