During a forum on Tuesday, Cathie Wood said she believes in Bitcoin and Ethereum.
Bitcoin sparked a revolution and Ethereum became the dominant smart contract platform, she said.
The head of Ark Invest said her company does not trade NFTs. NFTs are digital collectibles.
Cathie Wood, head of Ark Invest, said she is a strong believer in Bitcoin and Ethereum cryptocurrencies.
When asked which of the two currencies she was more confident in, she replied that it was difficult to compare the two. They are “focused on different revolutions” in the field of digital assets. “We’re very confident in both,” Wood said Tuesday in a post on a Public Trading App forum that was liked by about 10,000 investors.
Referring to bitcoin, the largest cryptocurrency by market value, she said it sparked a revolution for decentralized finance – and also for the future internet known as Web 3.0. “Bitcoin is the deep application of public blockchains, the basis of ‘autonomous’ digital money,” she wrote on the forum.
In the midst of the market crisis in January, cryptocurrencies also had to accept a sharp drop in prices. Bitcoin was trading at $38,405.60 on Tuesday, a far cry from its all-time high of around $69,000 in November.
As for Ethereum, Wood said it emerged “in 2021 as the dominant smart contract platform” for decentralized finance (DeFi) and digital collectibles known as NFTs and part of the $123 trillion global money supply is likely to conquer dollars.
When asked if Ark Invest would switch to NFTs, she said: “While Ark believes in DeFi and the usefulness of NFTs for various use cases including gaming environments, we only trade not actively NFT at this time.”
NFTs have become much more popular over the past year. These are, for example, digital works of art or collectibles – for example in computer games, the uniqueness of which is proven using blockchain technology. In 2021, sales of over $41 billion were generated worldwide with NFTs. They are usually minted on the Ethereum blockchain. Some crypto experts, such as FTX boss Sam Bankman-Fried, believe that other blockchains with so-called cheaper gas fees, i.e. service fees, will replace Ethereum as the as market leader.
Wood became a star investor with a cult following after her exchange-traded funds soared in 2020. The following year, her company’s flagship fund, the Ark Innovation ETF, crashed. The downward trend also continued in the new year, so that the year-on-year losses are 47%.
And what does Wood say about losses? On Public — Robinhood’s competitor with features like guest forums and a Twitter-like feed — she said Ark Invest focuses on long-term investing with a five-year horizon, which, according to her, “requires conviction”.
This text was translated from English by Mascha Wolf. You can find the original here.