Bitcoin is poised for takeoff, with a potential market capitalization in the trillions, says star money manager Cathie Wood, founder of Ark Investment Management.
“When you think the market cap of bitcoin is roughly $950 billion, think about that in the context of an Apple (AAPL) ,” she told a Bloomberg conference, the news service reports.
“It’s less than half of Apple’s valuation, and here we’re talking about the reserve currency of the cryptoasset world.” She reiterated that she sees bitcoin as a hedge against monetary stimulus.
As of Dec. 31, Ark Investment owned 7.3 million shares of Grayscale Bitcoin Trust (GBTC) , now valued at $240 million. Bitcoin recently traded at $49,803.72, up 0.33%.
“There’s always someone who’s hot as a pistol,” he said Thursday. “They take in a huge number of assets and then you never hear from them again.”
To be sure, “Cathie did identify Tesla (TSLA) ; she’s a great growth investor,” Cramer said. But “the interest rate environment says stay away from exactly the stocks she’s buying.”
On Wednesday, he said “Cathie is taking an endless amount of money in.” And Cramer doesn’t see that as a good thing. His own success as a hedge-fund manager stemmed from limiting his asset base, he said.
“She’s making decisions that to me seem arbitrary and capricious,” Cramer said.
Wood has indicated that “she regards certain stocks which I think are full of risk as almost bond-market equivalents, or stock or cash equivalents,” he said.