While much of Wall Street is in a panic amid the contagion of the banking crisis, one big investor is shining. On Tuesday alone, Cathie Wood’s flagship Ark Innovation ETF (ARKK ) took in $397 million in new money, its biggest one-day inflow since April 2021, according to FactSet. Investors are likely to pile into innovation funds on the belief that the current banking turmoil could put the Federal Reserve on hold from raising interest rates, which would favor growth stocks. Wood’s disruptive tech darling has been one of the hardest hit by rising rates over the past year. Wood herself insists on her view that central banks are making policy mistakes by ignoring signs of deflation and resorting to aggressive tightening. She expects her innovative stocks could see big gains when interest rates stop rising. “We won’t be surprised to see a return to the Roaring Twenties once the Fed stops looking back at CPI inflation and starts addressing the deflationary banking crisis caused by a 19-fold increase in short-term rates and an inversion in yields,” Wood said on Wednesday. In an earlier tweet. Markets are pricing in no rate hike when the Fed meets on March 21-22. The odds of a suspension soared to 65%, according to CME Group data Wednesday morning. Her flagship ETF, which manages about $6 billion in assets, is up more than 4% this week, outperforming the broader market amid growing concerns that the collapse of Silicon Valley Bank could have a contagion effect on the banking sector. ARKK 1Y mountain Ark Innovation ETF ARKK is up 21% this year, as Wood’s holdings of top stocks like Tesla and Roku have rebounded sharply. However, the fund is still 47% below its recent high. The fund, which Wood actively manages, has seen inflows of $100 million so far this year, the most of any broad-themed global equity fund category, according to FactSet data. The innovation fund focuses on advanced technology companies in the fields of genomics, robotics, internet and fintech. It currently owns 28 stocks.