Cathie Wood, the CEO and CIO of ARK Invest, believes that Bitcoin has the potential to surpass gold as a valuable investment.
Bitcoin vs. Gold
In a recent interview on ARK Invest’s YouTube channel, Wood and ARK Invest’s Chief Futurist, Brett Winton, discussed Bitcoin’s historical and recent price movements in relation to gold.
Wood described Bitcoin as both a “store of value” and a “risk off asset.” She pointed out Bitcoin’s remarkable growth compared to gold, showing a chart that revealed a sustained upward trend for Bitcoin. This suggests that Bitcoin could potentially become a more valuable investment than gold in the future.
Bitcoin’s Performance During Economic Crises
Wood also discussed Bitcoin’s performance during past economic crises. She noted that during the regional bank crisis in March 2023, Bitcoin rose by 40%, while the regional bank index, represented by KRE, plummeted.
Currently, the regional bank index is experiencing a similar crisis, and Bitcoin is following a similar pattern by maintaining a steady ascent. Wood attributes this uptrend to the approval and introduction of 11 Spot Bitcoin ETFs into the cryptocurrency market.
Spot Bitcoin ETFs and Bitcoin’s Surge
After the approval and launch of Spot Bitcoin ETFs on January 10, 2024, Bitcoin initially faced a decline, losing some of the gains accumulated before the approval. However, Wood believes that Bitcoin’s long-term trajectory is positive.
She explained that the initial decline was likely due to intense anticipatory buying before the ETF launch, followed by a “sell on the news” event driven by opportunistic traders.
Looking ahead, Wood anticipates Bitcoin’s continued rise, driven by the broader accessibility facilitated by Spot Bitcoin ETFs. She highlighted that Spot Bitcoin ETFs offer an easier and more inclusive way to access Bitcoin, attracting substantial inflows into the cryptocurrency as institutional investors actively participate in the market.