ARK Investments Founder, CEO, and Chief Investment Officer Cathie Wood is known for big, bullish bets on investments such as Tesla (TSLA) and bitcoin (BTC-USD). Now she's teaming up with 21shares on new crypto-based ETFs. Wood is bullish on bitcoin, with a base case of $600,000-$650,00, though she believes it could go even higher if a spot bitcoin ETF is approved. On the topic of a spot bitcoin ETF, something ARK Invest has applied for, Wood believes "something has changed," because the Securities and Exchange Commission followed up to their latest application with questions instead of rejecting it outright. For Wood, this is a sign that the odds of approval "have gone up." When asked by Yahoo Finance's Julie Hyman about the economy, Wood argues that weakness in the housing and auto markets are showing signs of a recession, adding that based on what she has heard on earnings calls "you'd think we're in a recession." Wood says the Federal Reserve is paying attention to lagging indicators, one of which is the Consumer Price Index, which she thinks will "turn negative before all is said and done." For a long time, Tesla was the top holding in the ARK portfolio. It has now dropped to third. Wood explains that it had more to do with rebalancing the portfolio than the stock. When it comes to Tesla's price cuts, Wood says “all that Tesla’s price cuts have done is offset the interest rate hit. So really, the monthly payments haven’t gone anywhere. Tesla will continue to cut prices because it can, its technology costs are falling and it’s profitable.” Wood goes on to say "you'll notice that the GM (GM) and Ford (F) have basically pulled back on their EV strategy and said, 'we can't, we can't do this unless it's profitable.' Well, this is chicken and the egg. It can't be profitable for them, just like it wasn't for Tesla until they scale. So if they're not gonna scale, they won't be profitable." Key video moments: 00:00:25 Wood on the new ETFs, why "the monetary system is bitcoin" 00:04:25 Why "something has changed" when it comes to the approval of a spot bitcoin ETF 00:07:38 Wood's bullish case for bitcoin 00:11:12 Wood on commodities, inflation, recession 00:15:58 Wood discusses what is driving the markets right now 00:18:45 Wood talks about ARK Invest's 2024 strategy 00:19:50 Why Wood is still bullish on Tesla 00:22:35 Wood explains why she isn't betting big on Nvidia
ARK Invest is teaming up with 21shares to launch new crypto-focused ETFs. ARK Invest Founder and CEO Cathie Wood says the partnership made sense given how complementary the firms' areas of expertise are. Wood says that bitcoin (BTC-USD) is "the first global, digital, private rules based monetary system in history" adding that global monetary policy is "unhinged, it's not hinged to anything except human decision-making" and that "the monetary system is bitcoin." Ark is one of the several firm trying to launch a spot bitcoin ETF. Wood says "something has changed," noting that the Securities and Exchange Commission has responded to their application with questions instead of just rejecting it. Wood believes this means that the odds of approval have gone up. Overall, Wood is still bull on bitcoin, saying her base case for the cryptocurrency is $600,000-$650,000. However, she thinks it could go higher, given the currency's scarcity and the potential for more institutional investment if a spot bitcoin ETF is approved. Click here to see the full interview with ARK Invest's Cathie Wood.
Cathie Wood’s ARK investment funds are selling shares of both Tesla and Coinbase while buying more shares of Twilio. The funds sold $26.3 million worth of Coinbase stock and $13.1 million of Tesla stock. Yahoo Finance Reporter Jared Blikre breaks down the numbers.