Cathie Wood on Bitcoin - WBD570

 





Cathie Wood is the founder, CEO and CIO of Ark Invest. In
this interview, we discuss investing in disruptive
technologies, the importance of research for investment,
deflationary signals, uncertainty in the Fed’s
decision-making, and Ark’s continued bullish outlook for
Bitcoin.    


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Back in 2015, Cathie Wood’s Ark Invest became the first
public fund manager to invest in Bitcoin. This was a very
early trade for an institutional basis, prior to some of the
major news events that have led others to have followed Ark
in recent years. But this is Ark’s business, identifying
nascent technologies that could serve to be the basis for
real societal change. 


Cathie Wood’s business strategy is to get into the detail of
the markets they're interested in. This means research by
informed analysts who can unpick the strengths, weaknesses,
opportunities and threats for each specific industry. Any
bullish statement they make is based on hard business data,
not just an extrapolation of financial performance. 


The elephant in the room for Ark is that their Innovation ETF
is down 75% from its highs in the early part of 2021. This
has placed Ark and Cathie in the firing line of commentators.
And for every negative article or tv piece, there will be a
line of nervous investors seeking reassurance. This is when
research pays off - it matters when you have a strong
narrative to fall back on if you want to maintain investor
confidence.


So, when Ark makes statements about Bitcoin we should all
take note, as they’re not in the market for unwarranted
hyperbole. Well, they remain one of the biggest cheerleaders
for Bitcoin within the institutional space. Ark followed up a
bullish prediction for Bitcoin’s valuation at the beginning
of this year by doubling down on their forecast a few weeks
ago: they are expecting a $1 million per coin valuation in
the coming years.


In an interview with Bloomberg earlier this month, Ark stated
Bitcoin is in “an arms race” against traditional finance and
asset classes. Ark is confident of Bitcoin’s ability to be at
the heart of a revolution in money given its multiple use
cases. Seeing as their fund has tracked the performance of
the S&P500 over the past few years, despite it being an
extended and brutal bear market for tech stocks, you wouldn’t
bet against them getting this call right.