During a recent appearance on "The Master Investor Podcast" with veteran business reporter Wilfred Frost, Ark Invest's Cathie Wood stated that she favors Bitcoin over Ethereum.
According to Wood, Bitcoin is "the global monetary system," which is alone "a very big idea."
The famed stock picker is also bullish on Bitcoin because of its superior technology, noting that the Layer-1 blockchain has never been hacked. "The other blockchains cannot say that," she added.
Lastly, Bitcoin is also viewed as a new asset class. The largest cryptocurrency is currently the ninth biggest asset with a market cap of roughly $2.2 trillion.
Warming up to ETH
With that being said, Wood has also noted that Ethereum (ETH) plays "a very important role" within the decentralized finance (DeFi) ecosystem.
She has added that a lot of the fees are going to Layer 2s of the likes of Coinbase's Base. They, according to Wood, are getting a "disproportionate" amount of fees, and the question is whether or not competing Layer 2s will confer more importance to the Layer 1. Ark Invest thinks that this could be possible, which is why the Florida-based investment firm is betting on ETH.
Bullish price prediction
Ark Invest, which made its first publicly disclosed Bitcoin bet back in 2017, has been bullish on Bitcoin for years. It has both direct and indirect exposure to the leading cryptocurrency by holding the shares of such companies as Strategy (MSTR).
The investment firm has predicted that the price of the leading cryptocurrency could surge to as high as $2.4 million by the end of the decade.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team