Cathie Wood, founder and CEO of investment management firm ARK Invest, echoed her bullishness on Bitcoin and other cryptocurrencies during a recent talk with journalist and investor Anthony Pompliano at Lyceum Miami.
Wood offered some insight into her investment strategy and industry outlook despite some recent setbacks to broader crypto macros, like the collapse of both FTX and Silvergate. and Wood says she remains bullish.
“Our belief has really grown over the course of this year. FTX, Celsius, Three AC, Voyager, all of these things have been centralized over the past year. 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.
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 factors that motivate her perseverance in bear markets.
“Like the world of cryptography, what has given us the courage of conviction and basically somehow shielded us from critics is that our research and breakthroughs have been faster, not slower. In tough times, innovation really picks up steam: faster, better, cheaper, more creative, more productive.”
You can watch the hour-long conversation between Wood and Pompliano at: Youtube.