Cathie Wood Says This Crypto Crash Is A Huge Opportunity, She Still Sees Bitcoin Up 6,000% To $1M – Here Are Her 3 Big Sector Bets

'You have to go through a crisis': Cathie Wood says this crypto crash is a huge opportunity, she still sees Bitcoin soar 6,000% to $1 million - here are her 3 big sector bets

‘You have to go through a crisis’: Cathie Wood says this crypto crash is a huge opportunity, she still sees Bitcoin soar 6,000% to $1 million – here are her 3 big sector bets

It probably doesn’t feel good to be a crypto investor these days. Bitcoin is down 65% year-to-date. And some say it’s not a “cryptozyme” but rather a “crypto die-off.”

Still, one expert remains bullish: Ark Invest’s Cathie Wood.

When asked during an interview with Bloomberg if she was still sticking to her Bitcoin forecast of $1 million per coin by 2030, her answer was “yes.”

“Sometimes you need to test the fight, you have to go through the crisis to see the survivors first,” he says.

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Wood acknowledges that the ongoing crypto crisis could delay institutional adoption, but he still thinks Bitcoin “smells like a rose.”

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

With Bitcoin currently trading at around $16,400, its $1 million price target represents a potential upside of 5,998%.

As always, Wood puts her money where her mouth is. Here’s a look at how a super investor is betting 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. Greyscale Bitcoin Trust is one of them.

According to GBTC, its shares aim to reflect the value of bitcoins held, less fees and expenses. The fund says it failed to meet that target because its shares traded at a premium or discount to value that “was at times substantial”.

GBTC shares are down 75% year-to-date.

The bankruptcy of cryptocurrency exchange FTX has sent shock waves across the crypto space, and that’s one of the reasons why investors are dumping GBTC shares. As a result, GTBC trades at a steep discount to its underlying asset, Bitcoin.

This discount caught Wood’s attention. It was announced that on Monday, Ark Investment Management acquired 176,945 shares of GBTC, valued at approximately $1.5 million.

Coinbase Global (COIN)

If you’ve ever bought bitcoins on an exchange, you know that there are usually transaction fees involved. And as more people rushed to buy cryptocurrencies, those transaction fees quickly added up.

That’s where Coinbase found its opportunity. As the largest cryptocurrency exchange in the US, it earns a transaction fee every time someone buys or sells a cryptocurrency on its exchange.

Read more: Trade up while the market goes down: Here are the best investment apps to pounce on ‘once-in-a-generation’ opportunities (even if you’re a beginner)

In Q3, Coinbase had 8.5 million monthly active users. It earned $366 million in transaction revenue and $211 million in subscription and services revenue.

Given the decline in cryptocurrencies, it’s no surprise that Coinbase stock has also seen strong volatility, falling a painful 82% in 2022.

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

Block (SQ)

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

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

Management changed the name last December as “Square” became synonymous with the company’s business operations. However, this move did not help investors much. In 2022, the stock fell more than 60%.

Although this company is far from popular in the market at the moment, it continues to deliver very impressive numbers.

In the third quarter, total net sales rose 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 cryptocurrency play: for the quarter, Block generated $1.76 billion in bitcoin revenue and earned $37 million in gross bitcoin profit.

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

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