ARK Invest’s Cathie Wood Explains Why Crypto Is Still Doing Pretty Good

ARK Invest CEO and CIO, Cathie Wood, believes that the crypto market is not in such bad shape as recent turmoil and market capitalization might indicate.

While the digital asset markets have remained relatively quiet in the last couple of days, Wood opines that it looks a lot better now than it did in the previous weeks. Commenting on crypto’s long haul in a new episode of her ‘In the Know’ podcast, she said:

“I will say that I am feeling a lot better about what’s going on in the crypto world right now. You’ll see our Bitcoin Monthly, I would say we’re neutral to positive. We’re waiting for a few more capitulation signals and, of course, time will tell on the systemic side here. We haven’t heard of another stress signal in the last few days, so that’s good as well.”

In addition, Wood noted that the past weeks have highlighted that its transparent ecosystem, provides the crypto industry with great long-term outlook, thereby possibly significantly impacting the traditional financial markets. She told her 542,000 subscribers:

“What’s happened in the crypto market gives you a sense of why it’s going to work [in the] long run. It’s transparent and there’s a lot more trust in the crypto ecosystem because of the transparency and the overcollateralization than I think there is in the traditional financial markets, and when we wonder why are the CDSes (credit default swaps) are going up on these banks. We wonder about the reach for yield and how leveraged some of these situations are, and we don’t know where they’re hiding, and so maybe that’s all this is.

It’s like, okay, the crypto market has alerted us that this reach for yield went way too far and there are too many excesses, too much leverage around it, hedge funds leveraging 10 to one when yields are 2% so that they can reach their return objectives. Maybe there are some problems out there, and we will find out.”

Where Cathie Wood’s ARK 21Shares Bitcoin ETF was rejected by the SEC in April, citing a lack of investor protections, her firm recently gave it another shot.