thecryptobasic.com
Ark Invest founder Cathie Wood has reiterated her strong conviction in Bitcoin, describing it as a superior alternative to gold.
In a recent interview with Bloomberg, Wood explained why she believes the digital asset maintains a structural advantage, even though short-term performance tells a more nuanced story.
Key Points
- Cathie Wood sees Bitcoin as a modern hedge against both inflation and deflation, highlighting its structural advantage over gold.
- She notes Bitcoin adoption is still in early stages, with institutional exposure developing and younger investors favoring digital assets over bullion.
- Despite Wood’s optimism, Bitcoin is down 27.7% year-to-date, while gold has gained 19% over the same period.
- Ark Invest is actively expanding its crypto-related holdings, including purchases of Bitmine, Bullish, and Robinhood.
- Wood and Ark view Bitcoin and digital assets as a generational shift in finance, focusing on long-term growth rather than short-term market fluctuations.
Bitcoin Structural Advantage
During the discussion, Wood framed Bitcoin as a hedge against both inflation and deflation. She acknowledged that gold has traditionally played a similar defensive role. However, she emphasized that Bitcoin’s digital nature sets it apart in a modern financial system.
According to Wood, gold’s demand profile is mature and well established. By contrast, Bitcoin is still in the early stages of institutional and retail adoption. Institutional exposure is still developing, she noted, while younger investors increasingly favor digital assets over physical bullion.
She also pointed out that both assets can serve as protection during deflationary cycles. In her view, Bitcoin has recently demonstrated stronger relative performance in that environment. This perspective underscores her belief that Bitcoin represents a generational shift in store-of-value investments.
Market Performance Tells a Different Story
Despite her optimism, current market data reflects a more complex reality. At the time of writing, Bitcoin was trading at $63,269. The cryptocurrency has declined 27.70% since the start of the year.
On the other hand, Gold was priced at $5,180 per troy ounce. The metal has gained 19% year-to-date. These figures show that gold has outperformed Bitcoin so far this year.
Consequently, this divergence highlights the tension between long-term conviction and short-term price action. While Wood focuses on structural adoption trends, recent returns favor the traditional safe-haven asset.
Ark Invest Doubles Down on Crypto
Even so, Ark Invest continues to expand its exposure to crypto-linked companies. Trading disclosures reveal that on February 12, the firm purchased 212,314 shares of Bitmine. The transaction was valued at approximately $4.2 million and spread across three exchange-traded funds.
On the same day, Ark acquired 74,323 shares of Bullish, worth about $2.4 million. The firm also bought 174,767 shares of Robinhood, totaling roughly $12.4 million.
Updated portfolio data shows that Bullish now ranks as the ninth-largest holding in Ark’s ARKF fund. The position carries a 3.4% weighting and is valued at nearly $30 million. In addition, Ark maintains ETF positions in Block, Circle, and Coinbase.
Long-Term Strategy Amid Volatility
Taken together, these moves reflect a consistent strategy. Although Bitcoin’s price has weakened this year, Ark appears focused on long-term ecosystem growth rather than short-term fluctuations.
Wood’s comments and the firm’s latest investments suggest a clear message. Ark views digital assets as a foundational shift in finance. Although gold currently leads in annual performance, Ark’s positioning indicates continued confidence in Bitcoin’s long-term trajectory.