Cathie Wood compared Bitcoin and Ethereum to gold

Bitcoin and Ethereum function as risk-free assets and serve as a ‘safe haven’ for investors amid macroeconomic uncertainty. Ark Invest CEO Katie Wood said.

In her view, the recent upheavals in the banking sector showed that the two largest cryptocurrencies by market capitalization could outperform other asset classes.

Following the collapse of banks Silvergate, Silicon Valley Bank and Signature Bank, Bitcoin demonstrated the most ‘impressive’ resilience metrics tracked by Ark Invest.

Wood believes that cryptoassets will ultimately become a ‘matter of choice’ when the sector gains broader recognition and regulation.

‘From our point of view, unlike traditional financial instruments, many crypto assets lack core failure points: they are decentralised, transparent, and auditable,’ Wood said.

Hedge-fund founder Ray Dalio gave a contrary view. In his words, Bitcoin cannot be considered an ‘effective currency’ because it is too volatile and central banks do not accept it.

Dalio emphasised that gold ranks third in reserves held by central banks, behind only the US dollar and the euro.

‘They can ban [Bitcoin]. They can regulate it. Yet central banks and countries largely oppose it,’ he said.

Earlier Dalio doubted Bitcoin’s ability to replace fiat. In his view, Bitcoin has accomplished a lot in 12 years, but it is still too volatile to wear the mantle of money.

In March, Katie Wood stated that, amid the banking crisis, cryptocurrencies became safe-haven assets. She also criticized regulators for using the industry as a scapegoat to excuse their own failures.