Cathie Wood, CEO of ARK Invest, reveals her outlook on cryptocurrencies
The ARK Invest CEO Cathie Wood has more often shared her outlook on Bitcoin rather than Ethereum. She states bitcoin being undervalued several times. Woods believes the asset has tremendous growth to do in the coming years. In addition, mentioning that Ethereum is even more undervalued than Bitcoin.
The Bitcoin and Ethereum debate have been an ongoing competition for years now and has only grown as the market gets stronger. The two most popular cryptocurrencies being against each other has caused great pastimes for the market.
On the show, CNBC’s Squawk Box Wood spoke about the crypto market. She goes into further detail on how Ethereum is undervalued. She puts things in context for the audience by stating that the largest cryptocurrency, Bitcoin, is, in her opinion, undervalued, as is Ethereum.
Bitcoin will be worth $500,000
One of the reasons behind people investing in Ethereum is the utility of the asset. Despite being just a year old, decentralized finance (DeFi) has achieved great growth, with Ethereum hosting the majority of DeFi activity. DeFi, according to Wood, was the driving force behind the digital asset’s success.
According to Wood Ethereum is still in its growing stages and it has a long way to go. In comparison to Bitcoin that is already a monetary system. She mentioned that certain institutions will be moving into DeFi and NFTs which can ultimately help the growth of the asset.
Wood made sure to mention where she stands in regards to Bitcoin. She noted that institutional investors are moving into the digital asset and it’s something hard to ignore. In her words “institutional managers have to look at new asset classes that are evolving and that have low correlation”. She said “That’s the holy grail in asset allocation”.
In its over a decade of existence, Bitcoin has undoubtedly had a successful run. Cathie Wood, on the other hand, believes the asset will continue to increase. Last month, the CEO predicted that if more institutions invest in bitcoin, the price may grow to $500,000 in the next five years.