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Ark Invest CEO Cathie Wood was a visitor on Merryn Somerset Webb’s present ‘Merryn Talks Money’, the place she mentioned the macro surroundings and the current happenings within the monetary world. What will primarily curiosity the crypto neighborhood 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, in contrast to Bitcoin, which she labeled as “new” and was simply gaining steam. 

While highlighting Bitcoin’s future potential and “incremental demand,” she said 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 lately by way of 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 among 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 anticipated 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 similar time. 

Cathie Wood Recognizes Bitcoin’s Importance

Earlier within the interview, Wood highlighted the value of Bitcoin as one of many issues her firm was monitoring in relation to the monetary markets and deciding on easy methods to gauge the inflation price. 

She alluded to how Bitcoin’s value rose from $19,000 to $30,000 in the course of 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 up to now touted Bitcoin as a hedge towards Inflation, Cathie Wood believes it will probably go each methods because the cryptocurrency may function a hedge towards deflation as a result of there isn’t a counterparty threat in Bitcoin. 

She appeared to counsel that Bitcoin was a haven for many, particularly with the banking disaster, as a result of it was utterly “transparent and decentralized,” in contrast to 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