Cathie Wood’s ARK Invest is raving about Bitcoin, Coinbase, and Tesla even as other investors have fled all three this year

news7f12/17/2022

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Cathie Wood's ARK Invest is raving about Bitcoin, Coinbase, and Tesla even as other investors have fled all three this year

Cathie Wood is keeping the faith. While many investors are fleeing Tesla and the crypto space, the CEO of ARK Invest remains bullish on the long-term value of Tesla, Bitcoin, and crypto exchange Coinbase—all of which have already successful this year—and investing accordingly.

This week, the fund ARK Investment Management bought nearly 75,000 shares of Tesla, nearly 300,000 of Coinbase and more than 315,000 won of the Grayscale Bitcoin Trust under siege, based on Bloomberg.

Such investments are not for the faint of heart. Tesla shares has decreased by about 61% from their peak late last year. Coinbase share fell to an all-time low this week, down more than 80% for the year. And Bitcoin, the largest cryptocurrency, has lost more than 60% of its value this year.

Certainly, not everyone believes in Wood’s optimism. Like The Wall Street Journal report This week, even many investors in ARK’s flagship ETF are losing faith. Shares of that fund are down about 60% this year.

But even with recent FTX collapsedFrank Downing, research director at ARK, said in an interview: videotapes the company posted to Twitter this month.

On Saturday, wood tweeted, “The Bitcoin blockchain has not missed a beat during the crisis caused by non-transparent centralized players. No wonder Sam Bankman-Fried doesn’t like Bitcoin: It’s transparent and decentralized. He can’t control it.”

Her company is also data sharing Bitcoin exchange data shows that the supply of the cryptocurrency held by long-term holders remained flat in November, showing that those investors have “long-term focus and high confidence” despite the situation. turmoil. In a Bloomberg interview Last month, she reiterated her prediction that Bitcoin will hit $1 million by 2030 (it’s under $17,000 right now) and said that it “smells like a rose.”

As for Coinbase, she said the uncertainty surrounding FTX could really help it.

“This is a domestic, regulated company,” Wood noted in an interview. interview with Bloomberg last month. “I think Coinbase is going to launch here looking very, very strong. It just lost a very big player in FTX.”

Coinbase CEO Brian Armstrong speaking at a crypto event a few weeks ago, following the crash, argue Coinbase is a publicly traded company and therefore much more transparent than FTX.

“You can read our financial statements,” Armstrong said. “They are audited by a third party, you don’t have to trust us. All client funds are segregated. We do not invest any of our clients’ funds without their explicit direction.”

This week Mazars, a French accounting firm, pause its work validation for assets held by crypto exchange Binance and other players in the space. Cryptocurrency firms have been unable to sign deals with Big Four accounting firms as they seek to boost their credibility amid the FTX collapse.

Wood also recently reiterated that she’s not worried about Tesla. This week, a major shareholder call for a new CEO to replace Elon Musk, who he thinks was too distracted to reshape Twitter to do the right thing.

Based on recent research from S&P Global Mobility, more automakers will flock to the electric vehicle space with lower-priced alternatives — especially with models priced under $50,000, “where Tesla hasn’t really competed yet. “. by Tesla EV market share will fall below 20% to 2025, down from 65% this year (through the end of the third quarter), it predicts.

But Tesla is “capturing a disproportionate share of the market, and will continue to do so, in a market that we think by 2027 will account for 85% to 95% of all cars sold in the world,” she said. speak. told Bloomberg. “It’s on autopilot.”

Amid doubts about her investments and strategy, Wood recently tweeted that the companies in her fund are “sacrificing short-term returns for exponential long-term growth and highly profitable”.

This story was originally featured on Fortune.com