ARK Invest CEO and Chief Investment Officer Cathie Wood made noteworthy remarks on a number of topics, from global markets to US inflation, from the crypto industry to initial public offerings (IPOs), on Bloomberg TV’s Bloomberg ETF IQ program.
In response to questions from Katie Greifeld, Eric Balciunas, and Scarlett Hu, Wood offered an optimistic outlook for the market, specifically defending Bitcoin’s advantages over gold.
The most resonant aspect of Wood’s speech was his expression of faith in Bitcoin.
“Bitcoin is definitely better than gold.”
Wood noted that investors are currently implementing a “barbell strategy” that combines stocks (in anticipation of low interest rates and economic recovery) with gold/crypto (as a hedge), adding that cryptocurrencies have performed well over time despite being more volatile.
Wood noted that ARK Invest has “very good exposure” to the crypto cycle, arguing that stablecoins (Tether and Circle, which make up 90% of the market) provide an important gateway to the decentralized finance (DeFi) ecosystem. He also explained why his fund prefers digital asset trusts (DATs) such as Bitmine and Soulmate over Ether exchange-traded funds (ETFs). The main reason, Wood explained, is that generating profits through staking is an important part of Ethereum’s story, and ETFs currently don’t allow for that. He noted that this strategy will expose ARK to the “big three” of Bitcoin, Ethereum, and Solana.
*This is not investment advice.