According to Cathie Woods, CEO of ARK Invest, Bitcoin could become a reserve currency in the near future.
ARK Invest is an investment management firm that managed the largest actively-managed exchange-traded fund (ETF) in 2020. Cathie Woods is well known for her investments in Bitcoin and Tesla on an early stage of their corporate cycle. Many say: “It’s Cathie Wood’s world. The rest of us just live in it.”
During the interview for Bloomberg she announced the great news that some companies started to allocate a little amount of their cash into cryptocurrencies. “That was a positive surprise, and we think this is going to continue,” said Wood.
The CEO of ARK openly stated that the traditional 60/40 equity-bond portfolio was working for a long time but is on its end. The main reason is that the bonds have negative yield which makes the investment unsuccessful.
“Look what’s happening to bonds right now. If we are ending a 40-year secular decline in interest rates, that asset class has done its thing. What’s next? We think crypto could be the solution,”
“If Bitcoin represents a new asset class, why not move in it?
Woods mentioned large corporations like Tesla or MassMutual which allocated a portion of their capital in crypto. “They are using Bitcoin as a hedge against what could go wrong.”