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

“They Have to Ride Crises”: Cathie Wood Says This Crypto Crash Is A Huge Opportunity Still Sees Bitcoin Climbing 6,000% To $1M – 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 this is not a “crypto winter” but rather a “crypto extinction”.

But one expert remains optimistic: Cathie Wood from Ark Invest.

When asked during a Bloomberg interview if she still maintains her Bitcoin forecast of $1 million per coin by 2030, her answer was yes.

“Sometimes you have to test yourself in combat, you have to go through crises to see the survivors first,” she says.

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Wood acknowledges that the ongoing crypto crisis could delay institutional adoption, but still believes Bitcoin will emerge from this “rose-smelling” outcome.

“Once they’ve done their homework and seen what happened here, I think they’ll feel more comfortable switching to bitcoin and maybe ether as a first stop.”

Considering that Bitcoin is currently trading around $16,400, their $1 million price target implies a potential upside of 5,998%.

As always, Wood puts her money where her mouth is. Here’s a look at how the super investor is betting on crypto.

Grayscale Bitcoin Trust (GBTC)

With the rise of bitcoin in recent years, a number of bitcoin funds have emerged. Grayscale Bitcoin Trust is one of them.

According to GBTC, its shares aim to reflect the value of its bitcoin holdings minus fees and expenses. The fund says it fell short of that goal because its shares were trading at a premium or discount to that value that “at times was significant.”

Year to date, GBTC shares are down 75%.

The bankruptcy of cryptocurrency exchange FTX has sent shockwaves through the crypto space, and it’s one of the reasons investors have sold GBTC shares. As a result, GTBC is trading at a steep discount to its underlying asset – Bitcoin.

This discount caught Woods’ attention. Ark Investment Management was reported to have acquired 176,945 GBTC shares on Monday, valued at approximately $1.5 million.

Coinbase Global (COIN)

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

This is where Coinbase found its chance. As the largest cryptocurrency exchange in the US, it earns a transaction fee every time someone buys or sells cryptocurrencies on its exchange.

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In the third quarter, Coinbase had 8.5 million monthly active users. It generated $366 million in transaction revenue and $211 million in subscription and service revenue.

Given the downturn in cryptocurrencies, it’s no surprise that Coinbase stock has also faced severe volatility — falling a painful 82% in 2022.

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

Block (SQ)

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

With a stake valued at $392.7 million, Block is currently ARKK’s fifth-largest holding.

Management changed the name last December because “Square” had become synonymous with the company’s vendor business. But the move did little to cheer investors up. In 2022, stocks are down more than 60%.

While the company is far from a market favorite right now, it continues to post some very impressive numbers.

In the third quarter, total net sales increased 17% year over year to $4.52 billion. Gross profit was $1.57 billion, up 38% year over year.

The company also plays with cryptocurrency: During the quarter, Block generated $1.76 billion in bitcoin revenue and earned $37 million in bitcoin gross profit.

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This article is informational only and should not be construed as advice. It is provided without any guarantee.

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