Ark Invest CEO Cathie Wood was a visitor on Merryn Somerset Webb’s present ‘Merryn Talks Money’, the place she mentioned the macro setting and the latest happenings within the monetary world. What will primarily curiosity the crypto group is what she needed to say concerning the flagship cryptocurrency, Bitcoin.
“Bitcoin Hands Down”
When quizzed by Merryn about which she would favor to carry for 10 years between gold, money, and Bitcoin, Wood replied by saying, “Bitcoin hands down.” She famous that whereas Bitcoin and Gold each have hedging functionalities, the latter already had its time, not like Bitcoin, which she labeled as “new” and was simply gaining steam.
While highlighting Bitcoin’s future potential and “incremental demand,” she acknowledged that establishments have been nonetheless barely concerned and that the foremost buyers of the longer term (the “young people,” as Wood put it) would favor to carry Bitcoin over Gold. She additionally talked about that Bitcoin has been outperforming Gold just lately when it comes to its hedging capabilities.
Wood’s bullishness on the foremost cryptocurrency could not come as a shock to many, contemplating that her firm, ARK Invest, is one in all many asset managers who’ve utilized with the US Securities and Exchange Commission (SEC) to supply a Spot Bitcoin ETF.
Interestingly, her firm leads the race towards approval because the SEC is predicted to decide (presumably approve) on their application in January 2024, with choices on the other applications to come after. However, it stays to be seen if that’s what will occur, because the SEC can select to approve (if it does) all funds on the identical time.
Cathie Wood Recognizes Bitcoin’s Importance
Earlier within the interview, Wood highlighted the worth of Bitcoin as one of many issues her firm was monitoring in relation to the monetary markets and deciding on methods to gauge the inflation price.
She alluded to how Bitcoin’s worth rose from $19,000 to $30,000 through the regional banking crisis that occurred again in March with a few banks like Silicon Valley Bank collapsing.
She described Bitcoin’s rise throughout that interval as “fascinating” and what number of noticed the cryptocurrency as a “flight to safety vehicle.” While many have previously touted Bitcoin as a hedge towards Inflation, Cathie Wood believes it could possibly go each methods because the cryptocurrency may also function a hedge towards deflation as a result of there is no such thing as a counterparty danger in Bitcoin.
She appeared to counsel that Bitcoin was a haven for many, particularly with the banking disaster, as a result of it was fully “transparent and decentralized,” not like banks the place clients have no idea something about what goes in there and the way their deposits are getting used or safeguarded.
BTC buying and selling in a decent vary | Source: BTCUSD on Tradingview.com
Featured picture from Cryptoknowmics, chart from Tradingview.com
