ARK Investment chief predicts more firms will invest in Bitcoin
According to Ark Invest’s chief executive, the Bitcoin ecosystem has not seen the end of institutional investors
Catherine Wood, the founder of ARK Investment (Ark Invest), believes that many more big firms will be exploring Bitcoin in the coming days. Wood predicted that a new wave of institutional investors was on the way.
She asserted that there has been an increasing interest in the digital asset lately and its epic run will attract several firms looking to add Bitcoin to their financial books. Wood specifically highlighted tech companies as the most probable to follow the current trend set by the likes of Square and MicroStrategy.
The star stock-picker explained that the companies had an understanding of the blockchain technology and would find it easy to invest in BTC compared to the rest. She added that tech firms will move to acquire Bitcoin as a hedge against the dollar.
“I think we’re going to hear about more companies putting this hedge on their balance sheet, as well, particularly tech companies–innovative companies who understand the technology and are comfortable with it.”
In addition, Wood pointed out that the friendly policies implemented by the Office of the Comptroller will be a huge driver of crypto adoption. She referenced the OCC regulation that allows banks to process payments using stablecoins.
“I also think that there’s been more validation in the space when it comes to the regulators”, she said.
Wood considers the digital asset as the best security against dollar devaluation at the moment. It is for this reason that she also sees the many big firms flooding in the Bitcoin ecosystem.
“I believe there’s no better hedge against inflation than Bitcoin. The dollar dropped roughly 7% last year. We, in the United States, lost 7% in purchasing power relative to other currencies around the world.”
Elsewhere, the former US Treasury Secretary Larry Summers has heaped praise on Bitcoin saying it is not a bubble. The economist asserted that BTC has the resilience to stay afloat as well as the potential to attract more investors. Speaking in a Bloomberg interview last Friday, he said, “I’m not going to predict its fluctuations over the next six months, but I think some institutions like it, and it is here to stay. I don’t think that the whole thing is going to collapse”.