Cathie Wood, CEO of ARK Invest, anticipates a growing trend of investors shifting from gold to bitcoin (BTC), especially with the advent of spot exchange-traded funds (ETFs). Speaking on ARK Invest’s “Big Ideas 2024” podcast, Wood highlighted BTC’s consistent rise relative to gold since its inception, despite being primarily priced against fiat currencies. She emphasized the ease of access to bitcoin through ETFs as a catalyst for this substitution trend.
The comparison of Bitcoin to gold as a store of value is rooted in their mutual traits of limited supply and the intricacies inherent in their mining methods. In contrast to fiat currencies, which can be printed without restriction, both BTC and gold possess scarcity, rendering them attractive options for preserving wealth over the long term. Wood drew parallels between the introduction of spot bitcoin ETFs and the impact of the first gold ETF, which saw gold prices surge by over 250% in the seven years following its launch in November 2004.
With the availability of ETFs facilitating broader access to BTC, Wood expects the substitution trend to persist, potentially reshaping the landscape of traditional store-of-value assets. As investors seek alternatives to traditional stores of wealth, bitcoin’s allure as a digital store of value continues to gain momentum.
