On Bitcoin and Ethereum, the CEO of ARK Invest said, “We Maintain High Conviction in Both.”

Catherine Wood, Founder, CIO, and CEO at ARK Investment Management, LLC (aka “ARK” or “ARK Invest”), lately shared her ideas on Bitcoin, Ethereum, decentralized finance (DeFi), and non-fungible tokens (NFTs).

According to a report by way of Insider, on Tuesday (February 1), Wood was once existing at an event/talk hosted with the aid of Public (a competitor to Robinhood that lets in customers to invest in stocks, funds, and crypto), which allowed retail buyers and merchants to ask her questions.

When Wood was once asked which of these pinnacle two cryptoassets she is more bullish on, Wood answered that it is no longer virtually viable to evaluate the two and went on to say:

“We hold high conviction in both.”

With regard to Bitcoin, she known as it “the most profound utility of public blockchains, the basis of ‘self-sovereign’ digital money.” As for Ethereum, she stated that it “emerged in 2021 as the predominant clever contracting platform.”

Wood was once additionally asked about DeFi and NFTs. She answered:

“While ARK has conviction in DeFi and the utility of NFTs for quite a number use-cases, together with gaming environments, we do not actively change NFTs as of these days in any of our strategies.“

On 25 February 2021, Wood talked about Bitcoin while speakme as section of a panel for the Bloomberg Crypto Summit.

With regard to Bitcoin’s market cap potential, this is what she had to say:

“We are so early. That $950 billion dollar market cap offers you a sense of community value, gives you a experience of how early we are. And the more than a few use instances that we have written about… as institutions go in, where an splendid asset allocation will be given risk and return parameters, a number of ones, and we also have dimensions, the use cases, the insurance plan policy that this represents towards not solely unhinged economic policy however outright confiscation of wealth in different countries, demonetisation, alternate settlement…

“When you aggregate all of these use cases for Bitcoin and anticipate a conservative allocation, let’s say that in the terms of money or insurance policies, you do get into the trillions of bucks of market cap workable out there.“

According to a document with the aid of MarketWatch, Wood also said that Bitcoin may want to one day exchange bonds:
“You assume about the standard 60/40 stock-bond portfolio, but look what’s happening to bonds proper now. If we are ending a 40-year secular decline in hobby rates, that asset type has done its thing. What’s next? We suppose crypto should be the solution…

“We know there’s a issue given all the quantitative easing and the no-rules based totally economic policy out there. Fixed income has executed forty years of in reality challenging work… If Bitcoin represents a new asset class, why no longer invest in it.“

The report went on to say that Wood also talked about how the fall of the U.S. dollar index has acted as a wonderful catalyst for Bitcoin but not for gold:

“The greenback losing 7% on a trade-weighed groundwork closing 12 months and falling in addition this yr is every other stimulus. It be a stimulus for gold, but Bitcoin is getting the incremental flows that might go to gold.“

On 24 February 2021, the ARK Invest CEO also commented on Bitcoin, this time at some stage in an interview on Bloomberg TV.

She said:

We’re very advantageous on Bitcoin again, very blissful to see a healthful correction here. No market is straight up; all and sundry recognize that. Everyone ought to have some dry powder for for days like these, and I’ve been announcing that for a while. We see so many use instances of Bitcoin, however yeah probably the the most vital use case is an insurance coverage around the world against confiscation of wealth, and that can happen in two ways.

“It can show up with inflation. Bitcoin, I think, is the fantastic hedge towards inflation out there a ways none and better than gold.

“And it can manifest outright. I mean, when you saw in the Middle East a prince seize his very own relative’s wealth… all people ought to know [that] if you suppose there’s a 5% threat of that happening, you need to put 5% of your portfolio or your wealth into some thing like Bitcoin…“

And on 2 February 2021, in an interview with Yahoo Finance, Wood said that ARK Invest was not shocked by means of institutional investors’ pass into crypto:

“We have been awaiting institutions to begin transferring into Bitcoin and other cryptoassets, however specifically Bitcoin, the most secure of the blockchains, because if you appear at the correlation of Bitcoin’s overall performance relative to any other asset class, it has the lowest correlation, that means if you purchase some Bitcoin, you will in addition diversify your portfolio and amplify your returns with decrease risk…

“Institutions appear for that low correlation. Bitcoin has it. That’s clear. We have 10 years of records now.“


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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