On today’s episode of the For Your Innovation podcast, our Chief Futurist Brett Winton interviews Bloomberg’s Eric Balchunas. Eric Balchunas is Senior ETF Analyst at Bloomberg Intelligence, where he leads the ETF and passive fund research and contributes to Bloomberg Opinion. He is a frequent speaker at industry events and conferences, as well as the co-creator of the Bloomberg podcast Trillions and Bloomberg TV’s ETF IQ. Eric is also the author of the recently released, The Bogle Effect, a book about how john bogle and vanguard turned wall street inside out and saved investors trillions. Brett and Eric discuss The Bogle Effect, and Vanguard’s John Bogle in detail, indexation in the investment management industry, passive vs. active investing[1], the media’s coverage of the investing world and much more. “What we try to tell people and is to go where the indexes aren’t…this industry like any other, you can see this with ETFs in particular, that’s where a lot of the innovation is seen.” – @EricBalchunas Key Points From This Episode: Eric Balchunas’ recent book; The Bogle Effect Indexing and how John Bogle brought indexing to Wall Street Eric explains risks of indexing for retail investors The size and scale of the passive fund market Eric’s views on risk within the active fund industry How exchange traded funds (ETFs) fit into the innovation of financial innovation How ETFs compare to index funds The media’s coverage of the investment management industry Eric’s stock ETFs and the risks they may pose to investors What the future might be for indexation and ETFs What Eric thinks is the primary function of investment advisors The potential of mass adoption of cryptocurrency based investment products

Today CEO and CIO Cathie Wood and Angie Dalton engage Caitlin Long, the CEO and Founder of the privately owned Custodia Bank, in an insightful conversation about her work and her particular take on the possibilities of crypto technologies in the current climate. Caitlin’s approach is one we do not hear about so often, and we get to explore how Custodia Bank is hoping to harness the powers of new technology and at the same time focus on proper regulation adherence and improving the dominant banking systems. We talk about the work that Caitlin is doing as a stepping stone and how we might get through this transitional period of integration, and Cathie and Angie get to ask our guest a number of very probing questions on what a truly modern payment ecosystem would look like. For Caitlin, it is a no-brainer to utilize this powerful, open, and cost effective technology to upgrade banking services. “Ultimately, what we’re trying to do is ensure that the on-off ramps are there and reliable so that legitimate businesses in this industry don’t lose their bank accounts.” — @CaitlinLong_ Key Points From This Episode: The significance of Wyoming to Caitlin’s work and the inspiration drawn from South Dakota. Caitlin paints a picture of the regulatory backdrop for her efforts to start a bank. Creating a bank in new infrastructure while integrating digital assets into the traditional banking system. Why access to the Federal Bank is necessary for this project. The likely impact of ‘open banking’ on the status quo and the incumbent powers. Exploring the idea of rehypothecation and Caitlin’s approach to lending and leverage. Recent lessons in transparency for policymakers. A little about Custodia Bank, its bank charter, and the problems they are aiming to solve. Adjusting the narrative around crypto and non-compliance with regulation. Comparing crypto with card networks and how the infrastructure might be replicated. Caitlin explans how Custodia Bank compares with Silvergate and Circle. Caitlin’s feelings about moving back to Wyoming!

The idea of artificial intelligence (AI) may appeal to many businesses for its cost-saving potential, but ARK believes in its ability to enable scaling reaches far beyond. Today, we are joined by the CEO of Scale AI, Alex Wang, to talk about the problem Scale was born out of, and its mission to enable every organization to utilize AI technology. In our conversation, we touch on everything from Scale’s origin story and its success in improving data set curation systems for machine learning algorithms, to the involvement of humans in the trajectory of AI systems. Alex breaks down the paradigm shift from human as author and editor to AI as author and human as editor, before explaining the market-enabling potential of AI. We discuss the geopolitical relevance of AI and what would could be required for any country to take the lead as an AI superpower. Listen in to find out more about the scaling potential of AI for businesses and the role Scale AI is playing to help make this possible for organizations all over the world! “If you solve the data problems and the data foundations of AI, that’s going to enable almost everyone in the world to be able to build great AI and transform their businesses.” — @alexandr_wang Key Points From This Episode: Introducing Alex Wang, CEO of Scale AI. What Scale AI does and who they serve. Alex shares the origin story of Scale AI. The exponential gains Scale has driven in the efficiency of data-producing systems for machine learning algorithms. The paradigm shift from human as author and editor to AI as author and human as editor, according to Alex. Alex’s prediction for the involvement of humans in the trajectory of AI systems. The market-enabling potential of AI. The notable rate of improvement in the AI field. The magnitude of scaling Scale AI enables for its customers. Alex’s view of the broader trend TikTok reflects, in terms of AI efficiency in a business context. The role AI could play in national security, and why Alex believes regulation is essential. The importance of AI from a geopolitical standpoint. The gulf of understanding between Silicon Valley and DC regarding AI, as told by Alex. Alex explains how Scale fulfills its mission to enable every organization with great AI technology. How Scale communicates the true value of AI to its customers. Examples of the use of AI in various industries. The challenges traditional companies face when it comes to embracing AI. What differentiates Scale from its competitors.

Today Frank Downing and Nick Grous are joined by current CEO of Polygon Studios, Ryan Wyatt! A lifelong gamer and technology enthusiast, Ryan shares his journey through these worlds as a user and then as a professional before we dive into Polygon and some of the foundational elements of what they are doing in the gaming and non-fungible token (NFT) space. Ryan talks about the Polygon protocol, and also how the company relates and compares to its peers and adjacent technologies. From there, the bulk of our conversation is spent unpacking what Polygon Studios is bringing to the table and how they are aiming to attract customers through their unique value offer. We also cover exciting avenues in the gaming world and weigh how much of this is going to the move into the Web3 domain. Ryan also comments more generally on the buy-in to decentralization, interoperability concerns, and his perspective on the realities of the metaverse. “We’re not really a studio. We’re not making any games in-house. We’re not creating any IP in-house. That’s very intentional, because I would never want to be at odds with any of the people that are building.” — @Fwiz Key Points From This Episode: Some background from Ryan on his journey through the world of gaming and media. Unpacking the Polygon protocol and how Polygon Studios fits into the ecosystem. Introducing Polygon’s role in the context of Ethereum and companies like Solana. The main products that Polygon is targeting as a means of attracting customers. Ryan shares some of the development happening at Polygon. The new toolset that is now available for game development. Possibilities for the future of the play-to-earn model and cosmetic purchase options. Considering mass adoption of Web3 and the current readiness for this. The spectrum of investment in the idea of decentralization. Interoperability arguments and Ryan’s thoughts about how best to tackle some of the issues. The transition that Ryan made from YouTube to Polygon and his reflections on the contrast. Ryan’s perspective on the potential of the metaverse.

Today, ARK analysts Frank Downing and Yassine Elmandjra and research associate David Puell join the For Your Innovation podcast to provide an update on the cryptocurrency market. Tuning in, you’ll hear all about what the last three months have meant for cryptocurrency, what led to Three Arrows filing for bankruptcy, where we are in the broader cost basis of the market, the state of the current decentralized finance (DeFi) infrastructure, and the biggest learnings from this turmoil. We also discuss how we believe all of this might play out for Ether, the path to recovery, the implications of the security regulation uncertainty of Coinbase, and the Tornado Cash incident. We even give you ARK’s market analysis of the broader price action featured in The Bitcoin Monthly! Be sure to subscribe to the Bitcoin Monthly, here. “There’s an interesting settling of the dust, where the size of every marginal fallout associated with Terra is diminishing.” — @yassineARK Key Points From This Episode: What the last three months have meant for cryptocurrency. What led to Three Arrows filing for bankruptcy. A market analysis of the broader price action that was featured in July’s edition of The Bitcoin Monthly. ARK’s view of where we are in the broader cost basis of the market. ARK’s conclusions from this turmoil and the state of the current DeFi infrastructure. How all of this might play out for Ether in the short and mid-term future. ARK’s metrics showing that the path to recovery could be well on its way. The recent security regulation and uncertainty around some of Coinbase’s listings. The Tornado Cash incident and its implications. Disclsoure Please note, companies that ARK believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so and/or may face political or legal attacks from competitors, industry groups, or local and national governments. ARK aims to educate investors and to size the potential opportunity of Disruptive Innovation, noting that risks and uncertainties may impact our projections and research models. Investors should use the content presented for informational purposes only, and be aware of market risk, disruptive innovation risk, regulatory risk, and risks related to Deep Learning, Digital Wallets, Battery Technology, Autonomous Technologies, Drones, DNA Sequencing, CRISPR, Robotics, 3D Printing, Bitcoin, Blockchain Technology, etc. Cryptocurrency Risk. Cryptocurrencies (also referred to as “virtual currencies” and “digital currencies”) are digital assets designed to act as a medium of exchange. Cryptocurrency is an emerging asset class. There are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency generally operates without central authority (such as a bank) and is not backed by any government. Cryptocurrency is not legal tender. Federal, state and/or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. The market price of bitcoin and other cryptocurrencies have been subject to extreme fluctuations. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. Cryptocurrency exchanges and other trading venues on which cryptocurrencies trade are relatively new and, in most cases, largely unregulated and may therefore be more exposed to fraud and failure than established, regulated exchanges for securities, derivatives and other currencies. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware, which may also affect the price of cryptocurrencies. Cryptocurrency Tax Risk. Many significant aspects of the U.S. federal income tax treatment of investments in bitcoin and other cryptocurrencies are uncertain and still evolving. The content of this presentation is for informational purposes only and is subject to change without notice. This presentation does not constitute, either explicitly or implicitly, any provision of services or products by ARK and investors are encouraged to consult counsel and/or other investment professionals as to whether a particular investment management service is suitable for their investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by ARK and are not endorsements by ARK of any company or security or recommendations by ARK to buy, sell or hold any security. Historical results are not indications of future results. Certain of the statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The matters discussed in this presentation may also involve risks and uncertainties described from time to time in ARK’s filings with the U.S. Securities and Exchange Commission. ARK assumes no obligation to update any forward-looking information contained in this presentation. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed.

On this episode of FYI, we showcase our latest episode of In The Know, a monthly video series on which our CEO and CIO Cathie Wood discusses fiscal policy, monetary policy, market signals, economic indicators, and innovation. You can find the full In The Know video series at our video center here. Cathie also weighs in on the Inflation Reduction Act, productivity, inventory build-ups, the latest employment report, commodities, why we’re already in a recession, and more. She also touches on the Bitcoin Monthly, a Bitcoin “earnings report” that details relevant on-chain activity and showcases the openness, transparency, and accessibility of blockchain data. Please subscribe here to download The Bitcoin Monthly Report. Key Points From This Episode: Inflation Reduction Act Productivity inventory build-ups The latest employment report Why commodities can be a good market indicator Why we’re already in a recession The Bitcoin Monthly

As improbable as it may seem, the metaverse is well under construction, but not in the way it’s been communicated to us in the mainstream. Joining us today to reconstruct all we know about the metaverse and its potential is Herman Narula, the co-founder and CEO of the privately owned metaverse technology company, Improbable. Improbable isn’t necessarily taking a different approach, they’re trying to solve a completely different problem. In this episode, we hear how their aim and approach differ from those of other game developers and the relationship the company has with the traditional gaming sector. Herman describes both the business and discovery model of Improbable’s M2 platform and the extent to which interoperability could be possible. We delve into blockchains and their role in the metaverse, which should fair best in the realm, and how M2 interacts with blockchains. Furthermore, Improbable has partnered with Yuga Labs: “The NFT Company Taking Over the World,” and Herman describes the intention behind it and what the partnership involves, before breaking down how he defines and views NFTs (Non-Fungible Tokens). Tune in to hear Herman’s thoughts on augmented and virtual reality, why he believes presence is more important than immersion, and discover how Improbable is making value transfer possible! “To me, the metaverse is a collection of related experiences that specifically augment and enhance existing communities [and] real-world culture.” — @HermanNarula Key Points Form This Episode Herman Narula gives an overview of his metaverse tech company, Improbable. How Improbable interacts with game engines but exceeds their usual capabilities. How Improbable’s aim and approach differ from that of other game developers. The convergence of technologies required to solve the gaming problem identified by Improbable. The flexibility and complexity of the platform and the resulting challenges. Why Herman has chosen to make everything as modular as possible for users. The relationship Improbable has with the traditional gaming sector. The industries that are most interested in what the company has to offer. Herman defines the metaverse and explains how the term is being mishandled in the mainstream. The benefit of the metaverse and how it differs from a video game. The benefits of blockchain technology and its role in facilitating value transfer in the metaverse. Improbable’s partnership with Yuga Labs in the NFT space. The predicted time-horizon for the full-functioning of the metaverse. How interoperability works in the M2 context and how Improbable has created a common technical basis between worlds. The biggest hurdles Improbable is currently facing. The business model of the platform and how it differs from existing online platforms. Why Herman prefers to use a link-based discovery model. How the M2 network will operate and how it interacts with blockchains. Herman predicts which blockchains will be most successful in the metaverse. How Herman defines NFTs What makes the M2 platform so appealing, without the need for a network effect. Why Herman considers Improbable and M2 to be powerful in the metaverse space. AR and VR, and the difference between presence and immersion. What Herman’s book, Virtual Reality,

E-commerce is taking the world by storm and today, we are joined by the President of Bukalapak, Teddy Oetomo, to find out how they’re revolutionizing the market in Indonesia. Bukalapak is a publicly traded Indonesian e-commerce company operating as a platform for both online and offline services for smaller retailers. The company partners with mom-and-pop kiosks to make its services easily accessible to customers in a cash-dominant society while enabling these small businesses to increase their revenue. In our conversation with Teddy, we learn more about Bukalapak and the Indonesian e-commerce market, and how the country’s unique socio-economic factors have lent to Bukalapak’s unique e-commerce strategy. We find out how the Indonesian market differs from other markets, and the various customer journeys available with Bukalapak. Teddy fills us in on Bukalapak’s acquisition strategy, financial services, and future plans. Tune in to find out about the nuances of the ever-expanding Indonesian e-commerce market and the versatile approach Bukalapak has adopted to meet the country’s needs. “You need practically a different strategy to tackle this market compared to [the] more commonly adopted global strategy.” — Teddy Oetomo Key Points From This Episode: Teddy Oetomo’s career background and his current role as President of Bukalapak. Indonesia’s recent history in terms of digitization. The socio-economic factors lending to Bukalapak’s unique e-commerce strategy in Indonesia. How the Indonesian market differs from other markets around the world. The nuanced e-commerce customer journey in Indonesia. The role of mom and pop kiosks in Bukalapak’s business model. Bukalapak’s acquisition strategy. The financial services Bukalapak offers, and is working towards. The typical financial services setup for convenience stores in Indonesia. The room for growth Teddy has identified in the financial services sector. The role of Bukalapak as the bridge to financial inclusion and digital transformation. The landscape of social media in Indonesia. Why Bukalapak is avoiding a single-channel strategy. The monetization capabilities of gaming and game items. The greatest challenges Teddy faces as he strives to reach the company’s goals.

Please note: as of 3/31/22, ARK’s clients own greater than 1% of the shares outstanding of Roku Inc. We believe there’s a major shift taking place in the TV ecosystem in terms of people moving from linear (cable) TV to connected (streaming) platforms and it’s only going one direction. The advertising world hasn’t quite caught up; In Roku’s first quarter earnings call, CEO Anthony Wood reiterated that US audiences spend 46% of their TV time on streaming while advertisers spend only 18% of their TV ad budgets on streaming.[1] We believe there is an enormous investment opportunity here, and in today’s episode we are going to be talking about why we believe Roku, the only purpose-built operating system for TVs today, is positioned to be a prime beneficiary of the shift from linear to connected TV. Tune in today to hear our predictions for the next five years, the factors required for our thesis to crystalize, exciting developments taking place at Roku, and more! You can read the full Roku valuation blog here. “The way that we think about Roku in this new digital TV ecosystem is as the new cable box.” — @GrousARK Key Points From This Episode: An overview of what Roku is. How the TV ecosystem has shifted. The drop that we expect to see in the number of households using cable/broadcast (linear TV) in the US in the next five years. The number of households that we expect to be using connected TV (streaming) in the coming years. The mismatch between advertising dollars spent and engagement in the streaming space. A comparison between the amount of advertising dollars spent on connected TV and linear TV. How we predict global and US advertising spending will change in the next few years. Three key variables that our assumptions about Roku’s future depend on. How we expect Roku’s daily hour stream per account metrics to change by 2026. Roku’s approaches to driving revenue dollars. Live sports; what we believe to be the linchpin holding the linear TV advertising space together. The growth that we expect to see in global digital advertising spending by 2026. Why we think connected TV targeting can improve but linear TV targeting cannot. Our calculations of Roku’s gross platform monetization rate. Benefits of the Roku Pay offering (that we are monitoring very closely). DISCLOSURE The forecasted performance and price estimates herein are subject to revision by ARK and provided solely as a guide to current expectations. There can be no expectation that the specific security will achieve such performance or that there will be a return of capital. Past performance is not indicative of future results. FORECASTED PERFORMANCE RESULTS ARE HYPOTHETICAL AND HIGHLY SPECULATIVE, AND PRESENT MANY RISKS AND LIMITATIONS. The recipient should not consider these estimated prices alone in making an investment decision. While ARK believes that there is a sound basis for the forecasts presented, no representations are made as to their accuracy, and there can be no assurance that such forecasts or returns will be achieved by the specific security. The recipient is urged to use extreme caution when considering the forecasted performance, as it is inherently subjective and reflects ARK’s inherent bias toward higher expected returns. Any higher returns should be viewed as a measure of the relative risk of such investments, with higher forecasted performance generally reflecting greater risk. There is no guarantee that any results will align with the forecasted performance, and they might not be predictive. Some or all results may be substantially lower than projected results and, as with any investment, it is possible that you could lose money. FORECASTED performance results (single security model simulation forecasts) have many inherent limitations. A recipient account might or might not hold this single security, and the account performance will be affected in proportion to its holding size and the amount of price fluctuation over time. No representation is being made that any client account will or is likely to achieve profits or losses tied to a security in the security model forecasts. In fact, there could be significant differences between these forecasted performance results and the actual results realized. Forecasted performance has not been achieved by the security, and like all modeled, projected or hypothetical performance, it is important to note that there are multiple versions of a model, and ARK has a conflict of interest in that we have an incentive to show you the best performing results. These forecasts rely on models, which calculate hypothetical performance. Several of the limitations of hypothetical performance models include: 1) reliance on a variety of data obtained from sources that are believed to be reliable, but might be incorrect, inaccurate or incomplete and ARK does not guarantee the accuracy or completeness of any information obtained from any third party, 2) potential inclusion of inherent model creation biases, data discrepancies and/or calculation errors that could cause actual results to differ materially from those projected, 3) NO reflection of the impact that material economic and market factors might have had on investment decisions that would have been in actual portfolios being managed at the time and do not involve market risk, and 4) NO guarantee of future investment results. The forecasted results rely on assumptions, forecasts, estimates, modeling, algorithms and other data input by ARK, some of which relies on third-parties, that could be or prove over time to be incorrect, inaccurate or incomplete. The forecasted returns are based on a variety of criteria and assumptions, which might vary substantially, and involve significant elements of subjective judgment and analysis that reflect our own expectations and biases, which might prove invalid or change without notice. It is possible that other foreseeable events that were not taken into account could occur. The forecasted performance results contained herein represent the application of the simulation models as currently in effect on the date first written above, and there can be no assurance that the models will remain the same in the future or that an application of the current models in the future will produce similar results because the relevant market and economic conditions that prevailed during the performance period will not necessarily occur. The results will not be updated as the models change, or any information upon which they rely changes. There are numerous other factors related to the markets in general or to the public equity security specifically that cannot be fully accounted for in the preparation of forecasted performance results, all of which can adversely affect actual results. For these reasons, forecasted performance results will differ, and could differ significantly from actual results. FORECASTED PERFORMANCE RESULTS ARE SUBJECT TO REVISION AND PRESENTED FOR ILLUSTRATIVE PURPOSES ONLY. While ARK’s current assessment of the subject company may be positive, please note that it might be necessary for ARK to liquidate or reduce position sizes prior to the company attaining any forecasted valuation pricing due to a variety of conditions including, but not limited to, client specific guidelines, changing market conditions, investor activity, fundamental changes in the company’s business model and competitive landscape, headline risk, and government/regulatory activity. Additionally, ARK does not have investment banking, consulting, or any type of fee-paying relationship with the subject company.

Please note: as of 3/31/22, ARK’s clients own greater than 1% of the shares outstanding of Mynaric. Mynaric CEO Bulent Atlan began his career as one of the first employees at the then newly-established SpaceX in 2004, having graduated from Stanford University and following completion of his studies at the Technical University of Munich. At SpaceX, he was essential in growing the company’s avionics department from seven people to over 200 and was as Vice-President responsible for the avionics of the Falcon rockets as well as the Dragon capsule. Bulent is now the CEO of Mynaric and Investment Partner at Alpine Space Ventures. Publicly owned, Mynaric produces the optical fiber for the skies and enables as a pioneer of laser communication extremely fast and secure wireless data transmission between aircraft, drones and satellites. On today’s episode, ARK Associate Portfolio Manager Sam Korus and Director of Research Brett Winton talk to Bulent about space laser communication, drone to drone communication, Mynaric’s partnership with the military and much more! Key Points From This Episode: Bulent Atlan’s introduction to the space industry and working at SpaceX Bulent’s road to becoming the CEO of Mynaric How a satellite system works without optical communication The opportunity to operate in countries with significant firewalls The precision of laser communication Drone to drone communication The role software plays in the performance of Mynaric’s systems The potential cost decline trajectory of orbital communications How much power is required to communicate with space laser technology Mynaric’s partnerships with Northrup Grumman and L3Harris