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Cathie Woods ARK Innovation ETF ARKK witnessed an impressive 3% surge on Tuesday, signaling its strongest session performance since late August.

Just a day before, the flagship fund of the ARK ETF family had plumbed its lowest levels since early May, sparking concerns among investors.

But the ETF made a stunning recovery, with several factors contributing to its resurgence.Chart: ARKK ETF Rallied On Its Strongest Day Since Late August

The primary driver of ARKKs comeback was the resurgence of optimism surrounding the approval of a Bitcoin ETF. Bitcoin-related Coinbase Global Inc. COIN , whose weight in the ARKK fund is 8.8%, played a pivotal role in bolstering the ETFs daily performance.

Its essential to note the ETFs impressive performance cannot be solely attributed to the crypto exchanges rally.

Excluding Meta Platforms Inc. META , all other 32 stocks that make up the ARK ETF ended the day in the green on Monday, indicating a broader recovery across its portfolio.

Tesla Inc. TSLA , ARKK ETFs top holding with nearly 9% weight, played a key role in the ETFs revival by rising 2%. This move alone contributed about 0.2 percentage points to ARKKs daily performance. UiPath Inc. PATH also chipped in with a 0.2 percentage point boost.

Another noteworthy contributor to the ETFs surge was Roblox Corp. RBLX , which rallied over 7% in its best session performance since April, on the heels of a bullish note from Stifel analyst Drew Crum.

DraftKings Inc. DKNG also experienced a robust upswing, surging 3.7% and contributing an additional 0.15 percentage points to ARKKs daily performance. Analysts at Bank of America have high expectations for the gaming giants third-quarter results, which are set to be announced next week.

Read Now: Grayscale Partners With FTSE Russell To Launch New Crypto Sector Indices

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