BlocksInform
Earlier this week, in an interview with Yahoo Finance, Catherine Wood, Founder, CIO, and CEO at ARK Investment Management, LLC (aka “ARK” or “ARK Invest”), talked about the Bitcoin.
It's in Bitcoin. Invest was not shocked by institutional investors’ move into crypto:
“We have been expecting institutions to start moving into Bitcoin and other cryptoassets, but primarily Bitcoin, the most secure of the blockchains, because if you look at the correlation of Bitcoin’s performance relative to any other asset class, it has the lowest correlation, meaning if you buy some Bitcoin, you will further diversify your portfolio and increase your returns with lower risk...
“Institutions look for that low correlation. Now we have a 10-year history.” It made her wonder about MicroStrategy and MassMutual's actions. MicroStrategy is one example of this: She noted that:“What surprised me and us was to see MicroStrategy convert all the cash on its balance sheet into Bitcoin and even do a second equity offering to free up more cash on the balance sheet.
That makes sense to me, but the regulators seem to have issues on this... Is this company the MicroStrategy technology company, or something like an ETF? MicroStrategy and MassMutual.
With regard to MicroStrategy, she said:
“What surprised me and us generally was to watch MicroStrategy, which has put all the cash on its balance sheet into Bitcoin and even did another equity offering so it could put more cash on its balance sheet. That move suggests that MassMutual is very conservative, very highly regulated, so they had to jump through many more regulatory hurdles than I considered possible just a short time ago, and so I think that is a seal of approval.” She continued, saying Bitcoin stands out for her because it has a market cap of 673 billion dollars, not even half the size of Apple or Amazon.“
As for MassMutual, which made the most surprising move, she had this to say:
It put $100 million into its general account. It is a bit small, but has a very large idea. Apple or Amazon aren't the biggest idea.”
Later, she talked about what makes Bitcoin stand out for her:
“Bitcoin is… There is no throat to choke. Bitcoin is the “first truly global digital currency out there,” according to Executive Chairman @CathieDWood of @ARKinvest. There is no centralized control. The throat cannot be choked. Those wearing badges of honor will be allowed to carry it. pic.twitter.com/nniOdL2SM6— Yahoo Finance (@YahooFinance) February 2, 2021. ?? “
Bitcoin “is the first global, truly global, digital currency out there,” @ARKinvest CEO @CathieDWood says. “It is completely decentralized. There is no throat to choke.” pic.twitter.com/nniOdL2SM6
— Yahoo Finance (@YahooFinance) February 2, 2021
