The asset management company Ark Invest, led by Cathie Wood, purchased Bitcoin spot ETFs through its two funds on Tuesday, further betting on its highly optimistic cryptocurrency layout.
According to data tracked by Ark Invest Tracker, Ark Invest bought its jointly issued ARK 21Shares Bitcoin ETF (ticker: ARKB) through the 'ARK Fintech Innovation ETF' (ARKF) and 'ARK Next Generation Internet ETF' (ARKW) together with 21Shares, with ARKF acquiring 5,754 shares; ARKW acquiring 49,246 shares. Based on ARKB's closing price of $30.92 on that day, the total value of this transaction is approximately $1.7 million.
The cryptocurrency market experienced a surge during yesterday's U.S. stock trading session, with Bitcoin (BTC) rising 2.2% in the past 24 hours, trading at $92,485 before the deadline. Ethereum (ETH) increased by 6%, trading at around $3,311.
Cathie Wood: Bitcoin's four-year cycle will be broken
Cathie Wood, the founder and CEO of Ark Invest, believes that Bitcoin is entering a new phase, and the adoption by institutional investors will help mitigate the risk of extreme price corrections in the future.
She stated during an interview on the program (Mornings with Maria) on Tuesday that Bitcoin is now positioned by the market as a risk asset, which may prevent it from operating according to the previous pattern of major rises and falls every four years.
"We believe this four-year cycle will be broken," Wood stated. "Bitcoin often experienced declines of 75% to 90% in its early days. Now, volatility is decreasing, and this time it has only retraced by about a third."
Wood pointed out that Bitcoin's current performance resembles that of a risk asset, but during some past crises—including the European sovereign debt crisis and the U.S. regional banking crisis—it actually played the role of a safe-haven asset. She stated that there is indeed still fear in the market regarding Bitcoin's four-year cycle pattern, but as institutional investors participate more in the future, it should be able to avoid deeper price declines.
Wood said: "We may have already seen the low point of this wave a few weeks ago."
In the past three months, the price of Bitcoin has dropped by about 20%, whereas gold has risen by nearly 60% this year. However, Wood predicts that this trend may reverse next year: gold may give back its gains, while Bitcoin has the opportunity to welcome a new wave of growth.
"Now, gold is more like a safe-haven asset, and its rise also proves that we are in the stage of 'climbing the wall of worry,' where investors are treating gold as a hedge against geopolitical risks," Wood said. "If you look back at the period from the early 1980s to the late 1990s, during what was known as the golden age of innovation—ending with the rise of the internet—gold actually fell all the way. We believe a similar situation may repeat now, with Bitcoin continuing to play the role of a risk asset, restarting its upward performance."
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