Isn’t ARKK a self fulfilling prophecy? Billions of new investments made into ARKK every month - hence millions of stock being purchased in relatively small companies that otherwise wouldn’t have seen so much demand (higher demand inc price). Am I understanding this wrong?

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For example, ARK owns 20% of Intellia Therapeutics

Smaller companies = higher growth potential. Yes it is more aggressive than holding a broad market index fund, but you need to be able to stomach the risk to reap to higher returns.

Unless they decide to sell off some positions and buy into new positions

Yes you are correct, this is one of the fundamental characteristics of the market. Buying a stock increases its price, selling decreases it. If a fund puts in a buy for 20% stake the price will rise. Ideally fundamentals and underlying business economics gradually drive prices to “fair value” so over all this effect is in the wash. In reality though, prices fall much faster than they rise.

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