Cathie Wood, a well-known Bitcoin investor and CEO of Ark Invest, sheds more light on Bitcoin’s hedging capabilities. Wood said several fiat currencies face devaluation and Bitcoin is a powerful alternative hedge.
Furthermore, the CEO noted that many people do not openly acknowledge Bitcoin’s potential, despite it performing extremely well. Bitcoin’s recent impressive price surge suggests that the coin can offer protection against the loss of wealth.
Cathie Wood Highlights Why Bitcoin Price Is Rising
Cathie Wood Reveals Bitcoin’s Hedging Potential on CNBC interview Wednesday, April 3rd, meet Andrew Sorkin. When asked about Bitcoin’s recent rise to a new high of $73,750 in March, Wood said the asset has become a hedge against high inflation for countries with less stable fiat currencies.
Furthermore, Wood pointed out that although currency depreciation is deeply affecting several countries, it is rarely discussed.
Ark Invest CEO says: ‘People are not talking about currency devaluation’ @CathieDWood The rise of Bitcoin USD. “Believe it or not, I think this is a flight to safety. A hedge against devaluation. A hedge against loss of purchasing power and wealth.” pic.twitter.com/8NVh5NS9tP
— Squawk Box (@SquawkCNBC) April 3, 2024
To back up her point, the CEO cited a number of countries with higher inflation rates, including Nigeria, Egypt and Argentina.
Wood said:
“The Nigerian naira has fallen by fifty, sixty percent in the last nine months.She also noted that Egypt’s currency has lost 40% of its value, while Argentina has been struggling with long-term devaluation.
Furthermore, the asset manager highlighted that citizens of these countries are adopting Bitcoin as a hedge against the depreciation of fiat currencies. Wood said such a massive rush for BTC led to its recent explosive surge to over $73,000.
“Believe it or not, I think this is a flight to safety. A hedge against devaluation. A hedge against loss of purchasing power and wealth,”
Cathy Wood said.
She cited the 40% surge in Bitcoin last year after the collapse of major U.S. banks. Wood believes that BTC is both a safe haven asset and a risk preference asset with no counterparty risk.
ARK Invest as a major Bitcoin investor
Cathie Wood of Ark Invest has been a well-known investor in Bitcoin. During the interview, she reviewed the company’s history with Bitcoin. According to Wood, ARK purchased its first batch of BTC at $250 per coin in mid-2010, when Greece threatened to leave the EU to resolve its debt crisis.
Ark Invest is one of the entities approved by the SEC to trade spot Bitcoin ETFs on ARKB.according to data According to data from BitMEX Research, ARKB is the third-largest BTC ETF by inflows, behind BlackRock’s IBIT and Fidelity FBTC.
As of April 3, Ark Invest’s ARKB held nearly $3 million in assets, equivalent to approximately 42,873 BTC tokens. The ETF only faced higher outflows than Grayscale on April 2. ARKB’s Bitcoin outflows were $87.5 million, while Grayscale’s was $81.9 million.
Bitcoin has made significant progress over the past few weeks. Flagship crypto assets surge in price. Although Bitcoin prices have retreated from their all-time highs, they are still up nearly 134% from last year.
