November 16, 2023

Cathie Wood of ARK Invest Optimistic on Bitcoin's Bull Market, Citing Strong On-Chain Metrics

During a recent CNBC interview, Cathie Wood, the CEO of ARK Invest, expressed confidence in bitcoin's current bull market, pointing to robust on-chain metrics that indicate the digital asset's strength as a secure store of value for investors.

In a recent interview with CNBC, Cathie Wood, the CEO of ARK Invest, discussed the positive indicators supporting bitcoin's position in a genuine bull market. She highlighted the robust health of Bitcoin's network, emphasizing its role as a reliable store of value for investors.

Wood stated:

"The health of the network is almost as good as it gets. And it seems like this is a bull market. Sure, we’ll have puts and takes. Nothing goes straight up. But I think there’s a flight to quality. [BlackRock CEO] Larry Fink used that expression. We call it a flight to safety"

Drawing parallels to historical events, Wood explained:

"You look at what happened during the regional bank crisis, bitcoin went from $19,000 to nearly $30,000 as the KRE, the regional bank stock index was imploding. If you look at the bank stock index today, it is back down close to where it was in March. Larry might say flight to quality, which is good. It’s true. We would say flight to safety because there’s no counter-party risk in bitcoin."

Wood expressed her belief that holding bitcoin directly would likely result in superior returns compared to investing in exchange-traded funds (ETFs) linked to bitcoin-related equities. However, she acknowledged the potential for substantial gains in digital asset-related equities, particularly companies involved in creating digital wallets.

"We believe bitcoin will be the better performer longer term. But this is a diversified exposure through equities. We’re trying to find the company that is going to produce the digital wallet. That will be a very important position. Is it Coinbase? Is it Square with Cash App?"
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