Share this article
Cathie Wood Likes Bitcoin as Both Deflationary and Inflationary Hedge
Wood would choose bitcoin over gold "hands down" as an asset to hold for the next ten years.
Updated Nov 6, 2023, 5:07 p.m. Published Nov 6, 2023, 5:07 p.m.
In this article
Cathie Wood, founder of investment manager ARK Invest, said bitcoin can serve as a hedge against deflation in addition to its potential in an inflationary environment.
Appearing last week on Merryn Somerset Webb's podcast for Bloomberg, Wood claimed there is no counterparty risk in bitcoin thanks to its decentralization and visibility of all transactions on the network. She contrasted this to the opaque inner workings of the banking system.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"You can only surmise because they're losing deposits and they have to fund those by selling securities," Wood said. "The deposit flight has not stopped and they're forced to raise interest rates to compete against money market funds."
Wood reminded of the regional bank crisis in the U.S. in March when a handful of lenders collapsed, helping to send bitcoin's price higher by nearly 50% to $30,000.
"[Now] you see it pumping up again and you see the regional bank index in the U.S. breaking below where it was in March."
Wood was echoing comments she made in May that the banking crisis along with the collapse of crypto exchange FTX a year ago had "proved the concept" of bitcoin as they exposed the dangers of centralization in financial systems.
BTC's reputation as a potential inflationary protection investment is in step with the crypto's comparisons to digital gold. While Wood acknowledged that actual gold can also work as a hedge against both inflation and deflation, she maintained that bitcoin would be her choice "hands down" if she had to choose an asset to hold for the next 10 years.
"Gold already has its demand, it's happened. Bitcoin is new, institutions are barely involved," she said. "Young people would much prefer to hold bitcoin than to hold gold."
Wood's ARK Invest is a sizable holder of cryptocurrency exchange Coinbase (COIN) stock and the Grayscale Bitcoin Trust (GBTC). The company has also filed paperwork with the U.S. Securities and Exchange Commission for its own spot bitcoin ETF.
Read More: Post-FTX, Bitcoin Is Ready for its Next Chapter
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
U.S. Spot XRP ETFs Hit 15-Day Inflow Streak, Near $1B Milestone
U.S. spot XRP ETFs approaching $1 billion are the most significant altcoin launch yet, validating a regulatory blueprint for all utility tokens and signaling Wall Street's post-lawsuit conviction.
What to know:
- U.S. spot XRP ETFs are on track to surpass $1 billion in inflows soon, following a 15-day streak of net investments.
- The ETFs have benefited from the resolution of Ripple's court case with the SEC, which clarified XRP's regulatory status.
- Institutional interest in XRP ETFs is driven by their stability and liquidity, distinguishing them from other crypto ETFs.
Top Stories
