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Cathie Wood Says This Crypto Crash Is A Huge Opportunity, Bitcoin Still Soars 6,000% To $1 Million – Here Are The Big Three Bets In Her Field


'You Need to Get Through the Crisis': Cathie Wood Says This Crypto Crash Is a Huge Opportunity, Bitcoin Still Soars 6,000% to $1 Million - Here Are 3 Big Bets in Her Field that

‘You Need to Get Through the Crisis’: Cathie Wood Says This Crypto Crash Is a Huge Opportunity, Bitcoin Still Soars 6,000% to $1 Million – Here Are 3 Big Bets in Her Field that

Nowadays, being a cryptocurrency investor is probably not good at all. Bitcoin is down 65% year-to-date. And Somepeople say that this is not “crypto winter” but “crypto extinction”.

However, one expert remains optimistic: Cathie Wood of Ark Invest.

When asked if she still holds her bitcoin forecast of $1 million per coin by 2030 in a Bloomberg interview, her answer was “yes.”

“Sometimes you need a combat challenge, you need to go through a crisis to see the survivors first,” she said.

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Wood acknowledged that the ongoing crypto crisis could delay institutional adoption, but still thinks bitcoin will “smell like a rose.”

“Once they really do their homework and see what happened here, I think they might feel more comfortable moving to bitcoin and perhaps ether as a first stop.”

Considering that bitcoin is currently trading at around $16,400, her $1 million price target implies a potential upside of 5,998%.

As always, Wood is putting her money in her mouth. Here’s how the super investor bets on cryptocurrencies.

Grayscale Bitcoin Trust (GBTC)

With the rise of bitcoin over the past few years, quite a few bitcoin funds have entered the market. Grayscale Bitcoin Trust is one of them.

According to GBTC, its shares aim to reflect the value of bitcoin holdings, with few fees and expenses. The fund said it failed to meet this goal because its shares were trading at a premium or discount to what was “sometimes substantial.”

Year-to-date, GBTC stock is down 75%.

The bankruptcy of crypto exchange FTX sent shockwaves throughout the crypto space and it was one of the reasons investors sold off GBTC stock. As a result, GTBC trades at a high discount to its underlying asset – bitcoin.

That drop in price caught Wood’s attention. Reportedly, on Monday, Ark Investment Management bought 176,945 shares of GBTC, worth about $1.5 million.

Coinbase Global (COIN)

If you’ve ever bought bitcoin from an exchange before, you know that there are often transaction fees involved. And as more people rush to buy cryptocurrencies, these transaction fees quickly add up.

That’s where Coinbase found its opportunity. As the largest cryptocurrency exchange in the United States, it earns transaction fees every time someone buys or sells crypto on its exchange.

Read more: Trade when the market goes down: Here are the best investment apps to take advantage of ‘thousand-year-old’ opportunities (even if you’re a beginner)

In Q3, Coinbase had 8.5 million monthly trading users. It made $366 million in trading revenue and $211 million in subscription and services revenue.

Given the crypto downturn, it’s no surprise that Coinbase shares have also experienced heavy volatility — they’re down 82% in 2022.

But the company remains in Wood’s portfolio. The flagship Ark Invest Ark Innovation ETF (ARKK) holds more than 5.9 million shares of Coinbase, worth approximately $257.1 million.

Block (SQ)

Wood’s Ark Innovation ETF also owns 6.26 million shares of Block, a digital payments technologist formerly known as Square.

With a stake worth $392.7 million, Block is currently the fifth largest stake in ARKK.

Management changed its name last December because “Square” had become a synonym for the company’s seller business. But the move did little to cheer investors up. By 2022, the stock is down more than 60%.

Even though the company is no longer a favorite in the market, it continues to deliver some very impressive numbers.

In the third quarter, total net sales increased 17% year-over-year to $4.52 billion. Gross profit reached $1.57 billion, up 38% from a year ago.

The company is also a crypto game: during the quarter, Block generated $1.76 billion in bitcoin revenue and made $37 million in bitcoin gross profit.

What to read next?

This article is for information only and should not be construed as advice. It is provided without warranty of any kind.

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