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 latest happenings within the monetary world. What will primarily curiosity the crypto group is what she needed to say in regards to 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 had been nonetheless barely concerned and that the key buyers of the long run (the “young people,” as Wood put it) would favor to carry Bitcoin over Gold. She additionally talked about that Bitcoin has been outperforming Gold not too long ago when it comes to its hedging capabilities.
Wood’s bullishness on the foremost cryptocurrency might not come as a shock to many, contemplating that her firm, ARK Invest, is certainly one of 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 (probably approve) on their utility in January 2024, with choices on the different purposes to come back 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 identical 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 learn how to gauge the inflation price.
She alluded to how Bitcoin’s worth rose from $19,000 to $30,000 through the regional banking disaster 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 previously touted Bitcoin as a hedge towards Inflation, Cathie Wood believes it could actually go each methods because the cryptocurrency may also 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 a lot of, particularly with the banking disaster, as a result of it was fully “transparent and decentralized,” in contrast to banks the place prospects 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
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