{"id":18801,"date":"2023-03-16T15:29:05","date_gmt":"2023-03-16T15:29:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ark-invest-ceo-cathie-wood-says-crypto-is-not-the-problem\/"},"modified":"2023-03-16T15:29:05","modified_gmt":"2023-03-16T15:29:05","slug":"ark-invest-ceo-cathie-wood-says-crypto-is-not-the-problem","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ark-invest-ceo-cathie-wood-says-crypto-is-not-the-problem\/","title":{"rendered":"ARK Invest CEO Cathie Wood says crypto is not the problem"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1678965860520-c02b91fc-8878-489f-ae86-c213e4b87956-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1678965860520-c02b91fc-8878-489f-ae86-c213e4b87956-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1678965860520-c02b91fc-8878-489f-ae86-c213e4b87956-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1678965860520-c02b91fc-8878-489f-ae86-c213e4b87956-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li dir=\"ltr\">Cathie Wood says crypto had \u201cnothing to do\u201d with SVB and Signature Bank collapses.<\/li>\n<li dir=\"ltr\">Rather, it\u2019s Fed policy that \u201ccaught many regional banks offside.\u201d<\/li>\n<li dir=\"ltr\">According to her, the banks suffered as a result of assets\/liability mismatch.<\/li>\n<\/ul>\n<p dir=\"ltr\">Cathie Wood, the founder and CEO of ARK Invest, says <a href=\"https:\/\/coinjournal.net\/cryptocurrencies\/\">crypto<\/a> isn\u2019t responsible for the failed Silicon Valley Bank (SVB) and Signature Bank, which was <a href=\"https:\/\/coinjournal.net\/news\/new-york-banking-authorities-shut-down-crypto-friendly-signature-bank\/\">shut down<\/a> by US authorities last Sunday.<\/p>\n<p dir=\"ltr\">Rather, she contends that the bankruptcies of Silicon Valley Bank and Signature Bank were a result of the Federal Reserve\u2019s policy. She believes that the lack of venture capital funding and higher yields on money market funds led to a reduction in deposits in the US banking system, contributing to the banks\u2019 financial troubles.<\/p>\n<h2 dir=\"ltr\">Wood: the Fed caught many regional banks offside<\/h2>\n<p dir=\"ltr\">According to the highly respected asset manager and investor, the banks\u2019 struggles are not due to crypto but down to regulatory and systemic issues, with many banks caught unawares after the surplus money flows of the COVID-19 era.<\/p>\n<p dir=\"ltr\">\u201c<em>Crypto had nothing to do with the banks\u2019 investment decisions, nor the Fed\u2019s decision to jack up interest rates 19-fold in less than a year. Incorrectly assuming that it was fighting a seventies-style inflation, the Fed caught many regional banks off sides with unrealized losses<\/em>,\u201d she argued.<\/p>\n<p dir=\"ltr\">In a <a href=\"https:\/\/twitter.com\/CathieDWood\/status\/1636178306209923072\" rel=\"noopener noreferrer\" target=\"_blank\">Twitter thread<\/a> posted on 16 March, the ARK Invest executive noted that despite the yield curve inverting in July 2022, and with credit default swaps \u201c<em>flashing red<\/em>\u201d, the Fed maintained its upward rates trajectory. In her view, the Fed failed to take note of unwinding inflation indicators, including commodity prices.<\/p>\n<p dir=\"ltr\">\u00a0\u201c<em>I am baffled that banks and regulators could not convince the Fed that disaster loomed. Did they not understand that the asset\/liability mismatch \u2013 normal in most circumstances for banks \u2013 was untenable as deposits left the banking system for the first time since the 1930s?<\/em>,\u201d the ARK Invest CIO\u00a0added.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The asset\/liability duration mismatch \u2013 securities earning only 1-2% vs. deposits paying 3-5% \u2013 became untenable as deposits started leaving the system. Like SVB, some banks were forced to sell HTM securities, recognizing losses that depleted their equity accounts.<\/p>\n<p>\u2014 Cathie Wood (@CathieDWood) <a href=\"https:\/\/twitter.com\/CathieDWood\/status\/1636178312841003008?ref_src=twsrc%5Etfw\">March 16, 2023<\/a><\/p>\n<\/blockquote>\n<p dir=\"ltr\">Commenting on what happened last week, with the government shutting Signature Bank after SVB\u2019s collapse, Wood says that all this is just about regulators trying to scapegoat crypto. In her opinion, cryptocurrency is \u201c<em>the solution to central points of failure, opacity, and the regulatory mistakes<\/em>.\u201d<\/p>\n<p dir=\"ltr\">Wood\u2019s comments came as House Republican Whip Rep. Tom Emmer, said he had written to FDIC Chairman Martin Gruenberg about reports the agency was \u201cweaponizing\u201d the instability witnessed in the banking sector to purge cryptocurrency activity from the United States.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">If you are correct, Congressman, then the FDIC and others will prevent the US from participating in the most important phase of the internet revolution. Like you, I believe regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking. <a href=\"https:\/\/t.co\/UDh3bwB2pB\">https:\/\/t.co\/UDh3bwB2pB<\/a><\/p>\n<p>\u2014 Cathie Wood (@CathieDWood) <a href=\"https:\/\/twitter.com\/CathieDWood\/status\/1636178266510721024?ref_src=twsrc%5Etfw\">March 16, 2023<\/a><\/p>\n<\/blockquote>\n<p dir=\"ltr\">Wood believes this scapegoating could see the US miss out on what is likely the most important innovation so far.<\/p>\n<p dir=\"ltr\">The ARK Invest CEO also commented on the overall market performance of cryptocurrencies amid the banking sector fallout. According to her, crypto acted more like safe haven assets as bank stocks tanked.<\/p>\n<p dir=\"ltr\">As highlighted <a href=\"https:\/\/coinjournal.net\/news\/bitcoin-hits-26k-as-investors-react-to-latest-cpi-data\/\">here<\/a> earlier this week, indeed Bitcoin price broke above $26,000 to lead the broader crypto market higher as markets reacted to CPI data. Erlier, stock markets had floundered under the weight of uncertainty fueled by crisis in the US banking industry.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/cathie-wood-crypto-did-not-force-svb-and-signature-bank-into-bankruptcy\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Cathie Wood says crypto had \u201cnothing to do\u201d with SVB and Signature Bank collapses. Rather, it\u2019s Fed policy that \u201ccaught many regional banks offside.\u201d According to her, the banks suffered as a result of assets\/liability mismatch. Cathie Wood, the founder and CEO of [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":18802,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/18801"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=18801"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/18801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/18802"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=18801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=18801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=18801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}