Ark Invest CEO Cathie Wood Shares Insights on Crypto Regulations Under President Trump and Bitcoin's BTC/USD Evolving Role in Financial Markets

Wood, a longtime Bitcoin bull, said in an interview with Bloomberg that she believes a Trump-led government would bring greater regulatory clarity

Ark Invest CEO Cathie Wood shared her thoughts on crypto regulations under former President Trump and Bitcoin's evolving role in financial markets.

Details: A longtime Bitcoin bull, Wood stated in an interview with Bloomberg that a Trump-led government would likely bring greater clarity and support for crypto regulations across all branches of the U.S. government.

She contrasted this with the Securities and Exchange Commission under Gary Gensler, which prioritized retail investor protections but failed to recognize Bitcoin's emergence as a new asset class.

According to Wood, Gensler's approach neglected the broader shifts occurring in financial markets and the role of crypto in these changes.

She also addressed the narrative of Bitcoin replacing the U.S. dollar, emphasizing instead their potential coexistence.

The growth of stablecoins, backed by U.S. Treasury securities, will continue to facilitate entry into decentralized finance, further solidifying crypto's presence in global markets.

"Bitcoin is a completely different animal, though. Completely different," Cathie Wood quoted.

While acknowledging Bitcoin's place within the tech movement, she views it as both a risk-on and risk-off asset.

Bitcoin surged in Spring 2023 during the regional bank crisis, demonstrating its hedge-like qualities.

Wood noted that while Bitcoin has some correlation to tech stocks, it's not as strong as the relationship between small-cap and large-cap equities. However, she anticipates an increase in correlations as institutional investors adopt BTC en masse.

Related Link: Cathie Wood Dismisses Trump Meme Coin, Remains Focused On Bitcoin, Ethereum, Solana

Deep Dive: Wood's comments come amidst substantial market shifts following DeepSeek's AI breakthrough.

She highlighted how the costs associated with artificial intelligence innovation are plummeting, with training costs decreasing by 75% annually.

She anticipates a shift away from mega-cap tech dominance, stating, "The most massive concentration in the market in history, worse than the depression, is probably going to give way to a broader based bull market."

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