Cathie Wood, the CEO of ARK Invest, attributes Bitcoin's surge to its role as a "haven asset" amidst the erosion of fiat currencies. In a CNBC interview released on April 3, Wood described Bitcoin as an investment with both potential gains and losses.

While U.S.-based exchange-traded funds (ETFs) have dominated the 2024 Bitcoin discussion, Wood emphasizes a different aspect. She believes that the opportunity for ordinary people is more significant than the increased institutional exposure to Bitcoin.

Currency Erosion

Wood points out the ongoing currency devaluations that are often overlooked. She cited the Egyptian pound and the Nigerian naira as examples, which have lost half their value compared to the dollar in recent months due to deliberate government actions rather than market forces.

The interview also mentioned the 2013 Greek financial crisis and the U.S. regional banking crisis last year, both of which have contributed to the rise in Bitcoin's price. Wood believes that Bitcoin serves as a shield against unpredictable governments or poor fiscal and monetary policies.

As ARK's ETF product competes with the world's largest asset managers, Wood has consistently voiced her support for Bitcoin. She predicted in March that a $1 million Bitcoin price tag is likely before 2030, driven mainly by the sudden influx of institutional money.