Investors are Moving to Bitcoin from Gold: ARK Invest CEO

🚀 Stay Ahead with AltcoinDaily.co! 🌐

According to Cathie Wood, the CEO of ARK Invest, a prominent American investment management firm based in Florida, investors are now moving to Bitcoin (BTC) from gold after the approval of eleven spot BTC exchange-traded funds (ETFs) in the United States in January. 

As reported earlier, spot BTC ETFs have recorded significant inflows since approval, and within the 13 days of trading, the offerings from leading asset management firms amassed a staggering 150,000 BTC. 

From Gold to Bitcoin

Wood stated in a chat with chief futurist Brett Winton on the asset management firm’s YouTube channel that the popularity of Bitcoin has been on the rise when compared to gold, owing to the significant surge in the price of the digital currency in the past few months.

  🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

“Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin,” said Wood.

She stated that BTC shows itself as a “risk off asset” when compared to the traditional finance system, which shows signs of weakening. 

Banking Crisis

The ARK Invest executive highlighted how Americans saw the collapse of multiple leading financial institutions like the Silicon Valley Bank (SVB) in early 2023, which resulted in people losing faith in the traditional financial infrastructure. 

 🦂 AltcoinDaily.co is your trusted source for the latest in crypto news and insights. 🚀

“The Regional Bank index was imploding and here again, the Regional Bank index is acting up,” she said, adding:

“This idea that it’s a flight to quality or a flight to safety is reasserting itself here.”

Performance of Spot Bitcoin ETFs

Wood also said that she was not surprised by the fall in the price of BTC once the eleven spot ETFs were approved by the Securities and Exchange Commission (SEC) in early January. Within a few hours, BTC fell 20% from $48,500 to $38,740 on January 24, as per data from CoinGecko. 

The ARK Invest executive pointed out that 15 million of the 19.5 million bitcoins currently in circulation haven’t moved in 155 days, adding that these tokens remain in “strong hands.” It is clear that most of the BTC holders are looking at the long term.

ARK Invest’s Spot BTC ETF

ARK Invest is one of the eleven firms that got their application approved for a spot BTC ETF by the SEC. BitMEX Research data shows that the firm held $705.8 million in Bitcoin after trading hours closed last week.

Meanwhile, spot BTC ETFs by Fidelity and BlackRock have been ranked among the top 10 ETFs with the largest inflows in the month of January.

 🔍 Your Crypto News Hub: AltcoinDaily.co! 🌐