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Cryptocurrency market is far from ‘bubble’, Ark Invest CEO affirms

Cathie Wood, CEO of investment management firm Ark Invest, has suggested that cryptocurrency markets are far from a bubble with Bitcoin embarking on a short-term rally.

Speaking to Yahoo Finance, Wood indicated that the cryptocurrency market has a bright future while stating that Bitcoin is rising to surpass gold as the digital store of value. 

According to Wood, despite the recent rally, markets are not in a price bubble. She notes that cryptocurrencies are a generational phenomenon, and the crypto industry is evolving as technology evolves. 

“Are we in a bubble? We couldn’t be further from it. The average investor doesn’t understand how provocative these next five to 15 years are going to be, as these S curves feed one another and enter exponential growth trajectories that we have never seen before,” she said. 

She made the remarks in disagreement with billionaire investor John Paulson who recently criticized Bitcoin and cryptocurrencies. According to Paulson, cryptocurrencies will at some point correct to zero in the near future, and they have no value. 

Wood stated that for the sector to mature, there still needs to be regulations that will be good for Bitcoin. 

“What we think he’s missing about cryptocurrencies is they’re much more than a store of value or digital gold. Bitcoin is a new, global monetary system that is completely decentralized and not subject to the whims of policymakers,” added Wood.

Her sentiments come as Bitcoin embarks on a short-term rally trading at $51,400, gaining 7% over the last seven days. 

More investment avenues

The financial expert noted that there are additional avenues for people to enter the crypto space, especially with the emergence of retail investment platforms like Robinhood. She described Robinhood’s entry into the crypto space as magnificent while stating that such platforms have changed how investments occur. 

“But I think Robinhood has introduced a whole new genre to investing and thinking about their future, and learning the hard way. Some have experimented with options, and it doesn’t take long to lose a lot of money with options, and they learn quickly. So I think Robinhood has done a great service to the investing community,” said Wood. 

According to Wood, retail platforms mostly attract young people, with Robinhood standing on top for offering options investing. 

Watch: ‘We couldn’t be further from’ a market bubble: Cathie Wood