‘We are worried about a recession,’ but there’s a silver lining — Cathie Wood

ARK Invest CEO Cathie Wood believes the White House is underestimating the recession hazard facing the US system stemming from US President Donald Trump’s tariff policies — an oversight that volition yet unit the president and Federal Reserve to enact pro-growth policies.

Speaking virtually astatine the Digital Asset Summit successful New York connected March 18, Wood said US Treasury Secretary Scott Bessent isn’t disquieted astir a recession. 

However, Wood said, “We are disquieted astir a recession,” adding, “We deliberation the velocity of wealth is slowing down dramatically.”

Cathie Wood speaks virtually astatine the Digital Asset Summit. Source: Cointelegraph

A slowdown successful the velocity of wealth means superior is changing hands little frequently, which is typically associated with a recession, arsenic consumers and businesses walk and put little money. 

“I deliberation what’s happening, though, is that if we bash person a recession, declining GDP, that this is going to springiness the president and the Fed galore much degrees of state to bash what they privation successful presumption of taxation cuts and monetary policy,” said Wood. 

Investors judge the archetypal domino could autumn successful the coming months erstwhile the Fed puts an extremity to its quantitative tightening programme — thing bettors connected Polymarket believe is 100% definite to hap earlier May.

Meanwhile, expectations for aggregate complaint cuts by the Fed successful the 2nd fractional of the twelvemonth are growing, according to CME Group’s Fed Fund futures prices.

The probability of rates being little than they are present by the Fed’s June 18 gathering is astir 65%. Source: CME Group

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Focus remains agelong term

ARK and Cathie Wood person been progressive cryptocurrency investors for galore years. ARK and 21Shares’ spot Bitcoin (BTC) exchange-traded money (ETF) was approved connected Jan. 11, 2024, and presently has much than $3.9 cardinal successful nett assets, according to Yahoo Finance data. 

Spot Bitcoin ETFs person recorded dense outflows successful caller weeks, but the wide inclination shows investors are holding their positions. Source: Farside

ARK besides offers crypto portfolio solutions to wealthiness managers done its concern with Eaglebrook Advisors. 

Wood told the New York Digital Asset Summit that “long-term innovation wins arsenic we spell done these trials and tribulations,” referring to the caller marketplace correction. 

When asked if crypto assets stay an “investable arc” implicit the agelong term, Wood said this strategy was the cornerstone of ARK’s concern approach. 

“[W]e’ve built retired positions successful much than conscionable the large three,” she said, referring to Bitcoin, Ether (ETH) and Solana (SOL).

This semipermanent arc is being supported by favorable regulations, which person improved the concern scenery dramatically. 

Pro-crypto argumentation changes are “giving institutions the greenish light, and if you look astatine our studies arsenic agelong agone arsenic 2016, we wrote a insubstantial called ‘Bitcoin: Ringing the Bell for a New Asset Class,’ and, yet galore institutions conscionable dismissed it retired of hand,” said Wood.

Now, institutions are looking astatine ARK’s studies and saying they “have a fiduciary work to exposure [their] clients to a caller plus class.”

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