The cryptocurrency market is trying to catch a rising momentum led by Bitcoin. ARK Invest CEO Cathie Wood says Bitcoin is rising because it is a safe haven against depreciating fiat currencies. Wood described Bitcoin as both a risky and a risk-off investment in an online interview with CNBC on April 3rd.
Insights from a Prominent Figure
The United States’ new exchange-traded funds may have shaped the mainstream narrative around Bitcoin by 2024, but for Cathie Wood, there’s another significant factor at play. Institutions are finally showing the much-needed interest in Bitcoin, offering an even more important opportunity to ordinary citizens. The famous figure made the following statement:
“Something else is happening in the world. Currency devaluations that people don’t talk about are occurring.”
Wood referred to the performance of currencies like the Nigerian naira and the Egyptian pound, both of which have lost about half their value against the US dollar in recent months. In these and similar cases, it was not direct market forces that drove down the exchange rate but deliberate government interventions. Wood shared the following remarks:
“I believe this is, believe it or not, a safe escape. A hedge against devaluation, protection against loss of purchasing power and wealth.”
The interview also touched on last year’s US regional banking crisis and the 2013 Greek financial crisis, which fueled the rise in Bitcoin prices. Wood concluded her remarks by saying:
“I think this is an insurance policy against regimes or terrible fiscal and monetary policies.”
What’s Happening in the ETF Space?
According to recent news, Wood continued to support Bitcoin publicly this year as ARK’s ETF product went head to head with the world’s largest asset managers. However, this week the fund saw about $90 million in unusual net outflows. Popular investor and analyst Daan Crypto Trades stated in a post shared via X:
“I suspect this has to do with three-month rebalancing flows.”
Data from crypto analytics firm Arkham showed that ARK’s outflows on April 2nd surpassed the initial outflows from Grayscale Bitcoin Trust, which were around $130 million. In March, Wood predicted a Bitcoin price tag of $1 million before 2030, especially due to a new institutional cash flow. Wood also added that a large part of the target market is not yet on board.
