Ark Invest's Cathie Wood: Bitcoin (BTC) needs clearer regulation

Sun 05 Sep 2021 ▪ 13h05 ▪ 3 min read — by Felix Meyer

Cathie Wood, CEO of Ark Invest, believes that cryptocurrency markets are far from being a bubble and argues regulation is a blessing for Bitcoin that brings clarity.

Paulson vs Wood

In a conversation with Yahoo Finance, the financial expert assured that the cryptocurrency world has a bright future ahead of it. Wood disagrees with billionaire investor John Paulson’s recent criticism of cryptos, Bitcoin in particular. She believes that BTC will succeed in outrunning gold as a store of value in this digital age.

A few days ago Paulson told Bloomberg that cryptocurrencies would eventually become meaningless. In his opinion, it’s not worth investing in cryptocos, since in the end they might be worthless regardless of where they’re trading today or whether they keep going up or down.

Cathie Wood denied John Paulson’s words, explaining that cryptocurrencies are more than a store of value or digital gold. In fact, Bitcoin is a new global monetary system that is fully decentralised and not subject to politicians.

Cathie Wood: crypto hype is justified

Wood also speaks about her investments in Coinbase and Robinhood — the leading regulated exchanges in the US. She notes that Robinhood’s turn to cryptocurrencies has been very positive for its business model, and while the SEC is trying to tighten oversight, no negative changes alarming investors are expected in the near future.

On the other hand, Cathie Wood emphasises how comfortable it is to invest in Coinbase. In her view, it is global benchmark for publicly traded cryptocurrency exchanges all across the globe.

Cathie Wood doesn’t believe cryptocurrencies are in a price bubble. The crypto industry is simply growing as the technology develops, and the ongoing crypto hype is justified enough. She is confident that the current rally will last at least another 10 years.

Bitcoin needs clearer regulation

Cathie Wood is not a cyberpunk, nor does she seek to disrupt the current financial system. Rather, she advocates clear regulation, which appears to be fundamental for the global adoption of cryptos.

However, she argues that the main problem is disparate regulators’ views on cryptocurrencies. Regulators need to come together and agree on exactly what cryptocurrencies are and how to define them. That would be fruitful, especially for the further development of the ecosystem.

Currently, the crypto industry in the US is in a tricky situation due to the diversity of criteria among regulators. The bipartisan $1 trillion infrastructure bill could entail quite significant risks for cryptocurrency companies looking to establish themselves in the country. Technology may be moving faster than politics does, however, eventually they will have to meet and find an agreement.

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Felix Meyer avatar
Felix Meyer

Le trading et l'analyse technique sont mes spécialités depuis 4 ans. Je décortique le marché et vous partage mon expertise.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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