Cathie Wood of ARK Invest: Beyond ETFs: The True Drivers of Bitcoin's Price Surge

Bitcoin's meteoric rise isn't just about ETFs, according to Cathie Wood of ARK Invest.

Wood sees Bitcoin as a "flight to safety" amid fiat currency devaluation. In an April 3 CNBC interview, Wood described BTC as both a "risk-on" and "risk-off" investment. Wood suggests that fiat currency devaluation is driving BTC's price surge.

The ETF Influence on Bitcoin

While U.S. ETFs may have influenced Bitcoin's narrative, Wood sees another crucial factor. Institutions are gaining BTC exposure, but ordinary citizens have an even bigger opportunity.

"Something else is happening worldwide," she asserts.

"There are monetary devaluations happening that people aren't talking about."

Wood pointed to currencies like the Nigerian naira and the Egyptian pound losing half their value against the USD. In many cases, deliberate government interventions, not market forces, decimated exchange rates.

"I think there's a flight to safety, believe it or not," Wood continued. "A protection against devaluation, a safeguard against purchasing power and wealth loss." The interview also discussed the 2021 U.S. regional banking crisis and the 2013 Greek financial crisis, both driving BTC price hikes.

"I think it's an insurance policy against rogue regimes or simply horrible fiscal and monetary policies," Wood concluded.

More than just ETFs for Bitcoin

While ARK's ETF faces competition, Wood continues to publicly support Bitcoin. This week, however, the fund saw unusual net outflows of nearly $90 million.

"I suspect this has to do with quarterly rebalancing flows," noted trader Daan Crypto Trades.

Accompanying data from crypto intelligence firm Arkham revealed preliminary outflows from the Grayscale Bitcoin Trust, which ARK's outflows exceeded on April 2, totaling around $130 million. In March, Wood predicted a $1 million BTC price by 2030, driven by institutional money inflows. Most of the target market, she added, wasn't onboard yet.