Female Stock Guru: Bitcoin beats gold; Ark buys Coinbase

Yamini003

Renowned as the "female stock guru," Cathie Wood, the founder of Ark Invest, has expressed optimism about cryptocurrencies multiple times. Recently, in an interview with Bloomberg's Podcast, she reiterated her views on crypto assets.

Female Stock Guru: Bitcoin is a better "inflation-resistant" asset than gold.

Firstly, Cathie Wood stated that Bitcoin not only has potential in an inflationary environment but also serves as a hedge against deflation. She emphasized that due to Bitcoin's decentralization and the visibility of all transactions on the network, it doesn't have counterparty risks, contrasting with the opaque operations of the banking system.

Cathie Wood also revisited the crisis in the U.S. regional banks in March of this year, when several banks collapsed, causing the price of Bitcoin to rise by nearly 50% to $30,000. She pointed out that as Bitcoin prices are rising again and the U.S. regional bank index is falling below the March levels, coupled with events like the collapse of the FTX cryptocurrency exchange last year and the banking crisis, it once again "validates" the concept of Bitcoin, exposing the dangers of centralization in the financial system.

Regarding the comparison of Bitcoin to digital gold, a digital asset to combat inflation, Cathie Wood expressed a different opinion. While acknowledging that gold can also hedge against inflation, she insisted that if one had to choose an asset to hold for the next 10 years, she would "not hesitate" to choose Bitcoin. She explained that gold has already found its demand, which has happened. Bitcoin is new, with almost no institutional involvement, and younger people prefer holding Bitcoin over gold.

Ark continues to buy Coinbase

In fact, Cathie Wood's Ark Invest continues to buy stocks related to Bitcoin, with its largest fund, ARKK, consistently increasing its holdings of Coinbase (COIN) shares. COIN has become the second-largest holding in the fund, accounting for approximately 8.75% of the fund's weight, with a market value of about $600 million.

According to ArkTrace data, Ark Invest has accumulated 229,965 COIN shares in November, valued at approximately $198.4 million based on the closing price of $86.3 per share on Friday. Currently, Ark holds a total of over 9.77 million COIN shares, with a market value exceeding $800 million.

Ritu13

I think it's quite handy, indeed.

Ritu77

I agree with the opinions and suggestions later on.

Samiksha

This is quite a wealthy perspective.

Kahn332

Dealing with Bitcoin can be quite tricky, don't you think?

Indra55

If you have the funds, you can consider making an investment, right?