Catherine Wood of ARK Investment considers the potential of BTC as a great alternative. The bitcoin ecosystem would now be showing how much it has evolved, according to the CEO of Grayscale.
In recent months, institutional investments have been more present in the Bitcoin (BTC) ecosystem. A torrent of billions of dollars has hit the markets, searching for the so-called “digital gold” and taking a position in the world of cryptocurrencies.
The potential of crypto assets as financial instruments was at the hands of two renowned directors of investment funds who realized a very profound analysis. Catherine Wood of ARK Investment and Michael Sonnenshein, CEO of Grayscale, discussed the issue during the Bloomberg Crypto Summit. This virtual event gathered many relevant business executives in the crypto environment.
Bloomberg Intelligence analyst Mike McGlone moderated the event. Panelists also noted that while they expected an explosive reaction in bitcoin institutional investments, the situation even surpassed their expectations. On this point, Wood indicated:
On this Point, Wood Clarified:
“We expected institutional investors to start moving (towards bitcoin). We did not expect institutions to diversify their cash assets on their (treasury) balance sheets. It turns up to be a positive surprise that we believe will keep on happening”, highlighted Wood during his speech.
The executive also stated that bitcoin’s capitalization, of about 850,000 million dollars at that moment, adds more value to the network and shows how the technology that surrounds cryptocurrencies stands still.
In Other Words, Wood said:
“Assuming a conservative allocation, in terms of cash or hedging policies, (bitcoin) has a capitalization potential of trillions of dollars,” added the fund manager in the talk. The macro-environment ».
Wood also compared the reach that bitcoin has acquired, as an asset, when comparing the currency’s achievements with the capitalization of the manufacturer of computers and mobile devices, Apple. The American company possesses a current capitalization of more than two trillion dollars, while bitcoin, in 12 years, has already reached one trillion dollars.
Wood’s point is that bitcoin, without being a company and valuation, already represents half of the world’s most influential company.
How is Bitcoin causing an Impact on gold and general business?
For the CEO of Grayscale, the volatile cryptocurrency and its relationship with a capital inflow of capital and the outflow of funds that gold has experienced is no coincidence. The precious metal is (and has been) the most important asset on the market, with a capitalization of 11 trillion dollars.
The representative of Grayscale, one of the largest cryptocurrency fund managers, said:
“There is no doubt that the fourth quarter of 2020 saw some of the largest outflows in gold investment products, (happened) at a time when Bitcoin exploded and hit all-time highs.”
Sonnenshein also considered the global situation due to the pandemic, financial crisis in countries, and what measures they have taken to keep economies afloat. On this point, he stressed that institutions now use bitcoin as a hedge against what could go wrong.
By: Jenson Nuñez