Cathie Wood Sees Bitcoin and Ethereum Coming Out of the Current … – STL.News

Date:

- Advertisement -

States Top Leading News

Advertisement

&nbsp

&nbsp
Cathie Wood, CEO of US-based investment management firm Ark Invest sees public blockchains like Bitcoin and Ethereum coming out ahead after the ongoing market crisis subsides.
In a letter dubbed “What The Market Overlooked in 2022”, sent to clients on Jan 12, Wood highlighted the breakthrough technologies that are already transforming the world, praising blockchain and digital wallets.
The crypto sector has faced various headwinds since Terra collapsed in mid-2021. More than six leading crypto firms have folded since then, with some like Voyager and BlockFi filing for chapter 11 bankruptcy. The collapse of FTX two months ago dealt a further blow to the sector, destroying billions of US dollars worth of user assets and threatening the future of more crypto firms.
This, however, did not interfere with the substratum of blockchain technology which continues to operate as intended, according to Wood. 
“Despite the recent collapse of crypto exchange FTX, underlying public blockchains like Bitcoin and Ethereum have not skipped a beat in processing transactions, highlighting that their transparent, decentralized, and auditable ledgers could be a solution to the fraud and mismanagement associated with centralized, opaque institutions,” she wrote.
Advertisement

&nbsp

&nbsp
The pundit also fronted Digital wallets as the next big thing, noting that they were replacing cash and credit cards. A recent report by California-based market research and consulting firm Grand View Research estimated the global crypto market wallet market to grow to about $48.27 billion in 2030 from 2022 estimates of about $8.42 billion. Crypto wallets help users keep their crypto assets safe and secure by storing their private keys. They also allow users to send, receive and spend cryptocurrencies like Ethereum and Bitcoin. Digital wallets overtook cash as the top transaction method for offline commerce in 2020 and accounted for ~50% of global online commerce volume in 2021.
Following the FTX collapse, the share of trading volume on decentralized exchanges, which allow investors to trade without a central intermediary spiked 37%. Centralized crypto exchanges such as Binance and Crypto.com also saw a drastic increase in outflows as investors took flight in fear of an FTX-like incident.
Wood continued to express hope in the crypto sector, scooping more Coinbase shares. According to her, unlike other exchanges,  “the fallout from Terra/Luna’s and FTX’s collapses propelled Coinbase’s share of fiat-based exchange volume (excluding Binance International) by 18 percentage points, from 22% in June to 40% in December.”
On Thursday, Ark Invest purchased 74,792 shares of Coinbase (COIN) for around $3.28 million, bringing its total holdings to 8.596 million shares valued at around $408.7 million based on Coinbase’s last closing price of $47.55 on Thursday. That stash now represents 2.92% of the firm’s entire portfolio allocation.
17005 Manchester Rd
Wildwood, Missouri 63040
Phone: +1 314-808-1870
Martin Smith ( STL.News, LLC )
Email: Marty@STLMedia.Agency
XML Sitemap

source

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

ADVERTISEMENT

Popular

More like this
Related

IMF predicts global public debt will be at 93% of GDP by end of 2024

Global public debt will exceed US$100 trillion by the...

World Bank’s Banga says more bilateral debt forgiveness needed

World Bank President Ajay Banga said on Thursday (17...

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

Ghana has finalised a pact with its official creditor...

Nigeria strikes deal with Shell to supply $3.8 billion methanol project

Nigeria has struck a deal for Shell (SHEL.L), opens new...