Cathie Wood praised crypto assets for proving to be safe havens as crisis unfolded in the US banking system last week.
Ark Investment‘s Cathie Wood is known for making some of the bold bets in crypto. Even during the strong downfall of 2022, Cathie Wood has been a regular investor in crypto companies like Coinbase.
In another such development, ARK Investment Management LLC managed to raise a staggering $16 million from investors for a new crypto-focused investments fund. On Wednesday, March 15, the filings submitted to the US Securities and Exchange Commission (SEC) show that the ARK Crypto Revolutions Cayman Fund LLC raised close to $9 million from one investor. Similarly, Delaware incorporated ARK Crypto Revolutions US Fund LLC raised another $7 million from nine listed investors.
The overall target of the fund is “indefinite” meaning the fund stays open-ended. However, unlike other offerings from Florida-based funds, these funds are private and open only to a small number of investors.
The recent filings with the US SEC come days after Ark Invest made a strong purchase of 301,437 Coinbase (NASDAQ: COIN) stock for the Ark Innovation ETF. As said, the company has been steadily buying COIN shares for its exchange-traded fund since the beginning of 2023.
Cathie Wood’s firm has been very much bullish about Bitcoin’s future. Earlier this year, Ark Invest predicted that the price of Bitcoin will touch $1 million over the next decade.
Cathie Wood On US Banking Crisis
Last week a major crisis unfolded on Wall Street with three major US banks – Silvergate, Silicon Valley Bank, and Signature – announcing overnight shutdowns. However, Bitcoin and the broader cryptocurrency market emerged stronger with a strong rally earlier this week.
Ark Invest’s Cathie Wood stated that cryptocurrencies proved to be a safe haven as the banking crisis unfolded. She further blamed the downfall of the banks on the Fed’s policy failure. In her recent thread on Twitter, Cathie Wood noted:
“Crypto did not force SVB and Signature into bankruptcy. In my view, Fed policy was the primary culprit. Because of a VC funding drought and higher yields on money market funds, deposits left the US banking system”.
She further stated that banks and regulators failed at convincing the Fed that the disaster loomed. They completely failed to gauge the asset/liability mismatch adds Cathie Wood.
Wood stressed that this would not have been possible in the decentralized, auditable, transparent, and over-collateralized crypto asset ecosystem. “In our view crypto is a solution to the central points of failure, the opacity, and the regulatory mistakes in the traditional financial system. Made the scapegoat for policy mistakes, crypto will move offshore, depriving the US of one of the most important innovations in history,” she said.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.