ARK Invest CEO Cathie Woods: Investors Shifting From Gold To Bitcoin Following Spot Bitcoin ETFs Launch
Summary:
ARK Invest CEO, Cathie Woods, suggests that investors are shifting from gold to Bitcoin following the launch of spot Bitcoin ETFs. Woods predicts Bitcoin will emerge as a "safe haven" during unstable banking sectors. With Bitcoin's correlation to gold rising in 2023, she expects the shift towards Bitcoin will continue. Most notably, her firm was one of the ten issuers to launch the ARK 21Shares Bitcoin ETF which currently holds $705.8 million worth of Bitcoin. Additionally, ARK Invest has also significantly invested in Coinbase's stock.
ARK Invest's CEO asserts that following the introduction of spot Bitcoin exchange-traded funds (ETFs), investors are beginning to shift their focus from gold to Bitcoin (BTC). "The rise of Bitcoin compared to gold is now leading to a substitution with Bitcoin. We anticipate this trend to maintain its momentum now that Bitcoin has become more accessible," Cathie Woods, ARK Invest CEO, stated in a conversation with the company's lead futurist, Brett Winton, on February 4th via the firm's YouTube channel.
In comparison to gold, Woods predicts Bitcoin will earn its stripes as a "safe haven asset" particularly during times of instability within the banking sector. She cites the sharp increase in Bitcoin prices by 40% in March 2023 during a "regional bank crisis" in the United States as an example.
Woods further expressed that she believes Bitcoin's role as a secure investment during financial instability is becoming increasingly dominant. An examination conducted by Fidelity affirms this by showing an increased correlation between Bitcoin and gold in 2023, breaking away from its formerly inverse relationship with fluctuating global interest rates.
The correlation score between Bitcoin and gold on a one-year rolling basis now stands at 0.80, says Longtermtrends, marking this as the highest point ever.
Addressing Bitcoin's ETF debut, Woods proclaimed she expected the subsequent 20% price drop from $48,500 to $38,740 a few hours post-launch on January 24. These figures were reported by CoinGecko.
On a brighter note, Woods observed that 15 million out of the total 19.5 million circulating Bitcoin remained static for 155 days, implying a long-term commitment from Bitcoin investors.
ARK Invest, led by Woods, was among the ten issuers that launched a Bitcoin ETF named ARK 21Shares Bitcoin ETF on January 11. Current records reveal that the ARK 21Shares ETF holds Bitcoin worth $705.8 million after closing time last week, says BitMEX Research. This ranks fourth after Grayscale's GBTC, BlackRock's IBIT, and Fidelity's FBTC.
Furthermore, as of February 2022, ARK Invest also heavily invested in the technology company Coinbase's stock (COIN), owning 7.187 million shares worth an impressive $843 million across different ETFs, as per data from Cathie’s ARK. However, it is worth noting that this figure has fallen since June 7, when it owned 11.43 million shares.
Published At
2/6/2024 3:05:24 AM
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