Cathie Wood: Crypto Market May Have Bottomed Out, Bitcoin Still Top Choice for Institutions

During the 1011 flash crash, Cathie Wood, founder of RK Invest, stated that Bitcoin, with the strongest liquidity among all crypto assets, is usually the first to be sold off, dragging down other currencies. Other currencies experienced larger declines. With the relevant information already digested, the market may have bottomed out. Cathie Wood emphasized that Bitcoin represents a new global monetary system and asset class, making it the preferred entry point for institutions into the crypto space and should be a top priority in institutional asset allocation. Regarding Ethereum and Solana, Cathie Wood noted that the narrative is changing. Ethereum serves as the infrastructure of choice for institutions, with the construction of second-layer solutions on Ethereum. However, with the rapid growth in L2 solutions, the risk of commoditization remains worth observing. Nevertheless, the Ethereum ecosystem continues to expand, making Ethereum our second choice. Solana leans more towards a consumer-facing blockchain ecosystem and has the potential to become part of institutional expansion in the future. In terms of asset allocation, Cathie Wood mentioned that due to flagship strategies not being able to directly hold crypto ETFs, ARK mainly participates in the crypto industry layout in stock form, including companies like Coinbase, Robinhood, and stablecoin-related company Circle, and holds a small amount of exposure to Ethereum and Solana. Currently, crypto-related assets account for approximately 12%-13% of the portfolio, a proportion considered appropriate overall. She added that the market is watching to see if large traditional financial institutions (such as Morgan Stanley, Bank of America, Wells Fargo, UBS, etc.) will formally introduce Bitcoin through ETFs in this cycle, a decision that could be a significant variable affecting the next phase of the market.

Related Articles