Bitcoin is the Most Important Investment of Our Lifetimes, Says ARK CEO

Cathie Wood, the founder and CEO of ARK Invest, a tech-focused investment firm, has reaffirmed her bullish stance on Bitcoin, calling it the most important investment of our lifetimes. She also praised the launch of Bitcoin ETFs in the US, saying that they make the cryptocurrency more accessible and low-cost for investors.

Bitcoin ETFs are a Milestone for the Crypto Industry

Wood said that she was very excited that Bitcoin is now in the ETF wrapper, which means that investors can buy and sell shares of funds that track the price of Bitcoin without having to deal with the complexities of custody and security. She said that this makes Bitcoin more attractive for institutional investors, who may have been reluctant to enter the crypto space due to regulatory and operational uncertainties.

“We’re very excited that Bitcoin is now in the ETF wrapper, and therefore very accessible at very low prices,” she said in an interview with CNBC on Wednesday.

Wood’s investment firm owns one of nine new Bitcoin ETFs that launched on January 11, 2024. The fund, called ARK 21Shares Bitcoin ETF, has accumulated $480 million in assets under management in just eight days of trading.

Wood said that she expected a “sell the news” event after the launch of the Bitcoin ETFs, as some investors may have taken profits or switched from other products like the Grayscale Bitcoin Trust (GBTC), which has seen a massive outflow of shares in the past few months. She said that this did not disturb her point of view at all, as she remains confident in the long-term potential of Bitcoin.

“I think some people expected [Bitcoin’s price] to hold a little more than it has,” she said. “But this has not disturbed our point of view at all.”

Bitcoin is the Biggest of All the Crypto Ideas

Wood also expressed her admiration for Bitcoin as a global, rules-based monetary system that is decentralized and transparent. She said that Bitcoin is the biggest of all the crypto ideas out there, and that it has a unique value proposition as a store of value and a hedge against inflation.

“We think Bitcoin is one of the most important investments of our lifetimes,” she said. “We think its the biggest of all the crypto ideas out there.”

Wood said that she believes that Bitcoin will continue to gain adoption and acceptance around the world, especially in countries that are facing economic and political instability. She cited the example of El Salvador, which became the first country to adopt Bitcoin as legal tender in September 2023, and said that other countries may follow suit in the future.

She also said that she is optimistic about the innovation and development that is happening in the crypto space, especially on the Ethereum network, which is the second-largest cryptocurrency by market capitalization. She said that Ethereum is enabling a lot of new use cases and applications, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.

“We are very excited about what’s happening in the DeFi space, the NFT space, the metaverse, gaming, all of these things are happening on the Ethereum network primarily,” she said.

Wood said that she is not worried about the competition or the regulation that the crypto industry may face, as she thinks that the technology is resilient and adaptable. She said that she welcomes the regulatory clarity and oversight that may come from the authorities, as she thinks that this will increase the confidence and trust in the crypto ecosystem.

“We think the regulators are going to become more friendly over time as they understand the space better,” she said.