Cathie Wood, founder and CEO of investment management firm ARK Invest, echoed her bullishness on Bitcoin and other cryptocurrencies during a recent talk at Lyceum Miami with journalist and investor Anthony Pompliano.
Wood offered some insight into her investment strategy and industry outlook despite some recent setbacks to the broader crypto macro, like the collapse of both FTX and Silvergate. , Wood says she remains bullish.
“Our belief has really grown over the course of this year. FTX, Celsius, Three AC, Voyager, all of this has grown over the past year because they’ve been centralized. And even centralized regulators are now looking at Genesis, likely bankruptcy, yes, Silvergate, these are regulated, but again, much more centralized and opaque.”
One key point Wood added is that he believes Bitcoin is a hedge against inflation and could play a role in diversifying institutional investors’ portfolios.
When considering Bitcoin as a new asset class, Wood also said it is important to recognize that Bitcoin shares similarities with the evolution of the derivatives market. Like derivatives, Bitcoin is a relatively new financial instrument facing regulatory challenges and uncertainties. […]securities,” she said.
“Coinbase is clearly a security and has assets on top of it that could become a new asset class. said Wood.
read more: Kathy Wood’s ARK Launches with $5.7M Coinbase Equity Purchase in 2023
In addition, Wood also discussed several risks associated with investing in cryptocurrencies, including regulatory risks and the potential for technological disruption to the existing industry. She also stressed the importance of conducting thorough research and due diligence before investing in cryptocurrency-related assets.
“Over the past 18 months our strategy has been very unfavorable. The time frame will shrink.”
Wood’s ARK Invest was one of the first traditional Wall Street wealth managers to start buying Bitcoin in 2015. Wood credits her unwavering sense of being bold and following her research and data as a motivating factor for her tenacity in bear markets.
“Just like in the crypto world, it’s our research and breakthroughs, not late, that gave us the courage to believe and basically somehow shielded us from critics. In tough times, innovation actually gets more traction: faster, better, cheaper, more creative, more productive.”
You can watch the hour-long conversation between Wood and Pompliano at: Youtube.
