Cathie Wood, the CEO of ARK Invest, believes that investors are starting to move from gold to Bitcoin (BTC) following the launch of spot Bitcoin exchange-traded funds (ETFs).
In a recent chat with chief futurist Brett Winton on ARK Invest’s YouTube channel, Wood stated, “Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin.”
Wood drew parallels between Bitcoin and gold, suggesting that both assets could serve as “risk-off assets” during periods of banking sector weakness.
She pointed to the March 2023 “regional bank crisis” in the United States, during which Bitcoin’s price surged 40% while the Regional Bank index imploded.
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A recent analysis by Fidelity showed that Bitcoin’s correlation with gold increased in 2023, decoupling from its previously inverse relationship with interest rates despite global rate hikes.
The one-year rolling correlation between Bitcoin and gold currently sits at 0.80, the highest it has ever been.
ARK Invest was one of 10 ETF issuers that launched a spot Bitcoin ETF on January 11, named the ARK 21Shares Bitcoin ETF.
The ETF currently holds over $700 million in Bitcoin, making it one of the largest Bitcoin ETFs in the market.
Disclaimer: The information provided is not trading nor financial advice. Bitcoinworld.co.in holds no liability for any trading or investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any trading or investment decisions.
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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.