YEREVAN (CoinChapter.com) — Bitcoin is the best defense against governments’ pro-inflation fiscal policies, according to ARK Invest CEO Cathie Wood.
The Wall Street veteran told CNBC that she sees Bitcoin as a safe haven against the constant devaluation of fiat currencies, a reason why the cryptocurrency’s value has risen by more than 70% in 2024.
Bitcoin Caters to Both Institutions and Everyday Investors: Cathie Wood
The regulatory approval and launch of nine spot Bitcoin exchange-traded funds (ETFs) in the U.S. might have shaped the popular narrative around BTC in 2024. However, ARK’s Cathie Wood points to another crucial element influencing the scene.
Institutions are now gaining valuable exposure to Bitcoin, yet everyday citizens are encountering an even more significant opportunity.
“There’s something else going on around the world,” she said.
“There are currency devaluations taking place that people are not talking about.”
Wood highlighted the performance of currencies like the Nigerian naira and the Egyptian pound, which have both lost about half their value against the U.S. dollar in recent months. In these instances, among others, deliberate government interventions—not direct market forces—were responsible for the dramatic decline in the exchange rates.
“I think this is a flight to safety, believe it or not, taking place. A hedge against devaluation, a hedge against a loss of purchasing power and wealth.”
Wood said.
The interview also discussed how last year’s U.S. regional banking crisis and the Greek financial crisis of 2013 contributed to increases in Bitcoin’s price.
“I think this is an insurance policy against rogue regimes or against just horrible fiscal and monetary policies.”
ARK’s ETF Faces $90M Outflows Amid Market Rebalancing Speculations
Wood has continued publicly supporting Bitcoin this year, as ARK’s ETF product competes with some of the world’s largest asset managers.
This week, however, the fund experienced unusual net outflows totaling nearly $90 million.
Popular trader Daan Crypto Trades suggested, “I suspect this is related to quarterly rebalancing flows,” in a part of his response on X.
Crypto intelligence firm Arkham shared data indicating preliminary outflows from the Grayscale Bitcoin Trust. On April 2, these outflows, totaling around $130 million, were even surpassed by ARK’s outflows.
In March, Cathie Wood forecasted a future where Bitcoin will reach $1 million by 2030. She attributed this bold prediction primarily to an anticipated wave of institutional investment. Wood emphasized that the majority of the target market still remains to engage with Bitcoin.
