Ark CEO Cathie Wood says Bitcoin is an anti-money laundering block

Ark Invest CEO Cathie Wood says Bitcoin will become a useful tool to escape high currency in countries with unstable currencies.

Bitcoin Article by Cathie Wood Asset management firm

Investors, a long-time AI and blockchain pusher, said the much-discussed “currency devaluation” was one of the driving forces behind this year’s asset rally.

Wood said: “The Nigerian naira has lost between fifty and sixty percent of its value in the last nine months.” said

“Egypt’s value has only fallen by 40%, while Argentina continues to lose value… I think it’s a safe flight, believe it or not, it happens.”

The price of Bitcoin (BTC) is up 50% year to date, surpassing its all-time high of $73,000 last month. Wood’s view of the rally contradicts many analysts who say the key catalyst was the successful launch of Bitcoin spot ETFs in January: Products reaching more Wall Street investors than Argentine citizens.

However, Bitcoin’s appeal as an “inflation hedge” asset is often debated within US borders. Larry Fink, CEO of BlackRock, the asset manager behind the best-performing Bitcoin ETF, previously described Bitcoin as “digital gold” and said the initial rise was a “flight to the positive.”

Reasons Why Ark Loves Bitcoin

Tree also echoed this idea, citing the banking crisis in March 2023; While this event caused the price of Bitcoin to increase by 40%, the government agreed to bail out Silicon Valley bankers.

Ark’s sole Bitcoin ETF, ARKB, now holds approximately $3 billion worth of Bitcoin on behalf of its clients. This week the fund suffered its first two-day outage since its founding.

Wood said: “Bitcoin is not a risk-averse company.” “Bitcoin is a risky asset… but it is possible.”

Wood said Ark first “arrived” when Bitcoin was worth $250, when Greece was afraid of leaving the European Union to solve its debt problem in the mid-2010s and could re-print the drachma as its own currency.

said: “I think it’s an insurance policy against bad government or terrible fiscal and monetary policy.”

CNBC host Andrew Sorkin expressed doubts earlier this week that people in these countries are chasing Bitcoin to escape a currency crisis, saying the idea is “fine powder” used by supporters to get people thinking about real estate.