ARK Invest CEO Cathie Wood is outlining a bold Bitcoin (BTC) prediction. In a new CNBC interview, ARK Invest CEO Cathie Wood says that she firmly believes the top crypto asset will soar by more than 2,000% within seven years. “In fact, we’re a little higher than [$500,000] in our base case for the year […]
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The U.S. Securities and Exchange Commission (SEC) has turned down another attempt to launch a spot Bitcoin (BTC) exchange-traded fund proposed by Cathie Wood’s ARK Invest and global crypto ETF provider 21Shares. In a newly issued order, the SEC is rejecting a proposal that would allow the ARK 21Shares Bitcoin ETF to be listed on […]
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The chief executive of investment firm ARK Invest thinks the U.S. Federal Reserve is about to alter its inflation strategy, which she believes will help the market rebound. In a new company video, ARK Invest CEO Cathie Wood says that the US economy is probably in an “inventory recession” right now. Wood says the current […]
The post ARK Invest Predicts Market Rebound, Says Crypto Assets To Become Valued for Scarcity in Age of Abundance appeared first on The Daily Hodl.
The crypto and innovative tech investment firm is confident that inflation will fall and the Fed will pivot in 2023.
The chief executive from crypto and tech investment firm Ark Invest believes crypto assets will see a huge turnaround this year as inflation falls and the Fed pivots.
In a company video blog on Jan. 23, Ark Invest CEO and CIO, Cathie Wood, started with a glance at the macroeconomic outlook. She said there was all kind of signals pointing to lower inflation which “suggests that the Fed should pivot soon.”
This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.
She added that the firm believes inflation will come down to the 2% Fed target level. However, Wood predicted that inflation could fall below this level and even into negative territory because the money supply has been falling.
The market is waiting for a signal from the Federal Reserve, she said adding “we think that will come in the first half of 2023.” She said that Ark Invest portfolios should do very well if interest rates are about to fall below expectations.
Ark has a crypto asset fund, blockchain venture investments, a disruptive innovation fund, and six active technology and fintech-based exchange-traded funds (ETFs).
Meanwhile, Ark’s Chief Futurist Brett Winton spoke of artificial intelligence (AI), noting that advances would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.
“Public blockchains, cryptocurrencies, and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”
He added that when there is a turn in the macro environment, and the Fed “changes its spots,” the opportunity for “expansion and value realization within the venture and public market space is even larger.”
Related: Cathie Wood’s ARK enters 2023 with $5.7M Coinbase stock purchase
Wood concluded that these technological innovations are deflationary which will “cause a boom in the products and services associated with this innovation.”
Ark Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares worth around $17.6 million.
Ark's GBTC weight in the portfolio actually increased despite the fund selling 500,000 shares in the past month.
Cathie Wood's Ark Invest offloaded a chunk of its Grayscale Bitcoin Trust (GBTC) shares since November's Bitcoin (BTC) price lows, the latest data shows.
Ark Invest added 450,272 GBTC shares worth $4.5 million to its ARK Next Generation Internet ETF (ARKW) in November 2022. At the time, GBTC was trading in the $7.46-$9.48 range versus $12.25 in January 2023.
GBTC price, of course, recovered alongside Bitcoin, rising roughly 40% from its November lows. The recovery in January also helped reduce the GBTC "discount" from nearly 50% to 40%, according to YCharts.
Interestingly, the share price rebound coincided with a reduction in ARKW's GBTC holdings by 500,000 shares, suggesting profit taking in the short ter.
Moreover, Ark's reduction in shares since November appears in line with its officially "bearish view" on the Grayscale Bitcoin Trust, as mentioned in its December report, which stated that:
"The Digital Currency Group (DCG) appears to be one of the biggest questions marks in the crypto industry at this time."
The company also expressed concerns about Genesis Global, a cryptocurrency lender owned by DCG. Genesis filed for bankruptcy while claiming $1 billion to $10 billion in liabilities to over 100,000 creditors.
Meanwhile, Grayscale has been unable to convert its Bitcoin trust into an ETF following rejections from the U.S. Securities and Exchange Commission (SEC). As Cointelegraph reported, an approval from the SEC could reset GBTC's discount to zero.
Nonetheless, as of Jan. 23, GBTC's share weight in Ark's portfolio has actually increased to 0.52% compared to its November 2022 low of 0.35%.
Ark's selling of GBTC shares in the past weeks coincided with accumulation of Coinbase (COIN) shares.
Cathie Wood's ARKW added 320,000 COIN shares (about $17.6 million) in 2023. As a result, the Coinbase stock's weight in Ark Invest's combined ETF portfolios has reached nearly 3.62% on Jan. 23 versus 2.73% at the start of this year.
Overall, Ark appears to be only increasing its exposure to the Bitcoin market, particularly as Wood is well known for her consistent $1 million BTC price prediction by 2030.
Similarly, Greenery Financial, an investment strategy firm, confirmed that it had shifted its GBTC exposure to ProShares Bitcoin Strategy ETF (BITO) due to the above-mentioned risks around DCG.
"Any bad news, be it Cathie Wood selling out of GBTC or DCG going bankrupt, will spark the same fears and doubt - of uncertainty - and likely cause an expansion of the discount once again," the firm warned in its SeekingAlpha note, saying:
"With Bitcoin having no real catalyst in the short term and plenty of potential downside catalysts, there are plenty of risks here from the NAV side as well."
Nonetheless Bitcoin and GBTC prices may keep on rallying through Q1 from a technical perspective.
On the daily chart, GBTC has reclaimed its 50-day exponential moving average (50-day EMA; the red wave in the chart below) near $9.68 as support.
Related: Grayscale files brief in ETF suit against SEC, oral arguments may come within months
Upward momentum could see it test the 200-day EMA (the blue wave) near $15 if it continues to float above the 50-day EMA wave, similar to what happened in March-April 2022.
The technical upside target falls in line with what Pat Tschosik, senior portfolio strategist at Ned Davis Research, predicts about the Grayscale Bitcoin Trust.
He argues that GBTC price could not only double by mid-2023, but also narrow the extant discount gap with Bitcoin's spot price.
“We recommend GBTC…as a way to play Bitcoin because it has a ‘potential NAV kicker rebate,’ which not only means it would go up if Bitcoin goes up, but also closing its current large 35% rebate on NAV,” Ned Davis Research said in a note to clients.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Ark Invest, the investment firm led by Cathie Wood, says long-term Bitcoin (BTC) holders held strong last year despite market turmoil. According to the investment firm, there remains a “robust cohort” of long-term Bitcoin holders who were not moving their crypto holdings despite high-profile cases of fraud and a collapse in price. Ark Invest says […]
The post ARK Invest Says Bitcoin Holders Remained Strong in 2022, With BTC Primed for Major Move appeared first on The Daily Hodl.
Market uncertainty calls for an opportunity to take advantage of disruptive innovation which has historically "gained share during turbulent times," says ARK Invest CEO.
ARK Invest CEO Cathie Wood believes that digital wallets and blockchain tech were among “game-changing innovations” that the equity markets largely ignored in 2022.
In a Jan. 12 blog post on the ARK Invest website, Wood suggested that the equity market faced a “wall of worry” in 2022, caused by fears of entrenched inflation and higher interest rates, and largely ignored a number of innovative technologies.
Wood highlighted that digital wallets are “replacing cash and credit cards,” noting that they overtook cash as the top transaction method for offline commerce in 2020.
Further arguing that digital wallets should not be overlooked, she noted that they also accounted for approximately 50% of global online commerce in 2021.
After the most difficult year ever in the equity market for innovation-based strategies, we just sent our clients this letter highlighting the breakthrough technologies that already are transforming the world. In our view, innovation solves problems! https://t.co/YdBiIZhY0D
— Cathie Wood (@CathieDWood) January 13, 2023
Wood suggested that the recent collapse of crypto exchange FTX hasn’t affected the larger mission of what public blockchains were intended for. She noted:
“Public Blockchains like Bitcoin and Ethereum have not skipped a beat in processing transactions.”
Wood highlighted how the FTX collapse educated crypto investors to be more diligent with where they store their crypto assets, saying that the share of trading volume on decentralized exchanges, which allow for trading without a central intermediary, rose 37%, jumping from 8.35% to 11.4%.
Wood said she has never in her “30 years working in portfolio management” experienced such unstable market conditions, saying she has never seen “markets this dislocated.”
The CEO suggested that the economy is facing a challenging situation, with a decrease in money supply, a decline in commodity prices and the “unwinding” of bloated inventories, which indicate a slowdown in inflation, and possibly even deflation.
Related: Visa dreams up plans to let you auto-pay bills from your crypto wallet
Wood noted in the report that the fear is high in investors stating that investors are holding “high levels” of cash not seen since the 9/11 crisis in 2001.
Other “game-changing” innovations that Wood believed the equity market “largely ignored” in 2022 included Artificial Intelligence (AI), electric vehicles, space exploration and 3D printing.
She believes despite uncertainty in the market, disruptive innovation technologies which “solve problems,” have historically “gained share during turbulent times.”
ARK Invest founder and CEO Cathie Wood is predicting that the high-profile implosion of FTX will be a boon for one crypto sector. Wood says in a Yahoo! Finance interview that the collapse of FTX and other crypto firms will boost decentralized finance (DeFi) networks. “We do believe DeFi will actually get a boost coming […]
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BTC price action is suffering from FTX, but decentralized blockchains are "as strong as ever," says ARK Invest.
Bitcoin (BTC) and decentralized blockchains are “as strong as ever” in the wake of the FTX meltdown, ARK Invest says.
In the latest edition of its monthly newsletter, “The Bitcoin Monthly,” the investment giant came out firmly bullish on BTC.
With BTC price volatility ebbing into December, the industry is still reeling from ongoing FTX contagion.
As lawmakers only begin to get to grips with the events, when it comes to Bitcoin, ARK is doubling down on its conviction — and setting it firmly apart from centralized alternatives.
“The fall of FTX could be the most damaging event in crypto history,” one of the latest report’s “key takeaways” states.
While acknowledging that even Digital Currency Group (DCG) — one of whose products, the Grayscale Bitcoin Trust (GBTC), it recently bought — “faces considerable pressure” as part of the fallout, ARK delivered a key critique of what it called “centralized intermediaries.”
“ARK’s conviction in decentralized and transparent public blockchains is as strong as ever,” it confirmed.
“The FTX and other cases like Celsius and Alameda suggest that decentralization and transparency are paramount as antidotes to the gross mismanagement that can be associated with centralized intermediaries, especially fraudulent ones.”
As such, despite being bearish on some on-chain metrics, there was reason to keep the faith on Bitcoin.
Examples to bear in mind included the resilience of long-term investors, a group refusing to give into the temptation to sell despite recent BTC price declines.
“We believe this datapoint indicates holders’ long-term focus and high conviction, despite recent events. Today, long-term-holder supply is 72% of bitcoin’s total circulating supply,” the report continued.
Bitcoin's realized profit/ loss ratio also came in for attention, this now hitting all-time lows, as Cointelegraph reported.
Related: ‘Imminent’ crash for stocks? 5 things to know in Bitcoin this week
Profit/ loss ratio refers to BTC transacted on-chain in profit and loss, respectively.
“Bitcoin found meaningful bottoms in every previous instance—2011, 2015, and 2019—in which that metric reached <10%,” ARK commented.
“November’s realized profit/loss data inform our view that a historically significant capitulation is underway.”
BTC/USD traded around the $17,000 mark at the Dec. 6 Wall Street open, data from Cointelegraph Markets Pro and TradingView showed, still attempting to flip the level to firm support after days of indecisiveness.
ARK's CEO, Cathie Wood, earlier this year doubled down on a prediction that Bitcoin would hit $1 million by 2030.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
The founder and CEO of investment firm ARK Invest is doubling down on her prediction that Bitcoin (BTC) will hit a seven-figure price by 2030. Responding to a question during an interview with Bloomberg about whether she is still holding on to her forecast that Bitcoin will reach $1 million in eight years, ARK Invest […]
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