In a recent interview, Catherine Wood, Founder, CIO, and CEO at ARK Investment Management, LLC (aka “ARK” or “ARK Invest”), shared her thoughts on Bitcoin and Ethereum.
Wood’s comments were made on Wednesday (23 November 2022) during an interview with Carol Massar and Tim Stenovec on Bloomberg Businessweek Radio.
One of the first questions for Wood was why she still trusts crypto. The ARK Invest CEO replied:
“If you look at the blockchains — let’s use the Bitcoin blockchain and Ethereum — what you’ll find is they have the infrastructure. The technology has not skipped a beat throughout this entire crisis. In fact, Bitcoin’s hash rate is at an all-time high, and that is a real indication of the security of the network.
“On Ethereum, we’re seeing the total value staked at $24 billion; that is an all-time high. So we think the infrastructure is working beautifully.“
With regard to Bitcoin, when asked if she stands by her prediction that Bitcoin wil be worth one million dollars per coin by 2030, Wood said:
“Yes. Sometimes you need to battle test, you need to go through crises, to see the survivors, first of all, but really to battle test the infrastructure and the thesis. And again, we think bitcoin is coming out of this smelling like a rose because of what i have mentioned previously.
“And I do think that the one thing that will be delayed is perhaps institutions stepping back and just saying, ‘okay, do we really understand this?’, and once they actually do the homework and see what’s happened here, I think they might be more comfortable moving into into Bitcoin and perhaps Ether as a first stop, as they’ll understand it more.“
According to a report by Insider, on 1 February 2022, Wood was present at an event/talk hosted by Public (a competitor to Robinhood that allows users to invest in stocks, funds, and crypto), which allowed retail investors and traders to ask her questions.
When Wood was asked which of these top two cryptoassets she is more bullish on, Wood replied that it is not really possible to compare the two and went on to say:
“We maintain high conviction in both.”
With regard to Bitcoin, she called it “the most profound application of public blockchains, the foundation of ‘self-sovereign’ digital money.” As for Ethereum, she said that it “emerged in 2021 as the predominant smart contracting platform.”
Wood was also asked about DeFi and NFTs. She answered:
“While ARK has conviction in DeFi and the utility of NFTs for various use-cases, including gaming environments, we do not actively trade NFTs as of today in any of our strategies.“
On 25 February 2021, Wood talked about Bitcoin while speaking as part 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 gives you a sense of network value, gives you a sense of how early we are. And the various use cases that we have written about… as institutions move in, where an appropriate asset allocation will be given risk and return parameters, various ones, and we also have dimensions, the use cases, the insurance policy that this represents against not only unhinged monetary policy but outright confiscation of wealth in other countries, demonetisation, trade settlement…
“When you aggregate all of these use cases for Bitcoin and assume a conservative allocation, let’s say that in the terms of cash or insurance policies, you do get into the trillions of dollars of market cap potential out there.“
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