ARK Invest CEO Cathie Wood is worried about recession that she thinks could arise out of President Donald Trump’s tariff policies.
Wood shared her concern while speaking virtually at the Digital Asset Summit in New York on March 18.
While the Treasury secretary Scott Bessent isn’t worried about recession, Wood claimed, the industry is worried about it. “We think the velocity of money is slowing down dramatically,” she said.
The velocity of money refers to the rate of capital movement in the market. A slower velocity means that capital is moving at a slower pace which is an indication of a recession.
Such a scenario will give the President and the Fed a lot of “freedom to do what they want in terms of tax cuts and monetary policy,” added Wood.
Despite her concern for a recession, the ARK Invest CEO trusted her firm’s crypto investments. She added that positions in cryptocurrencies were crucial to the firm’s investment approach.
Wood affirmed that crypto has a long-term “investable arc” and “long-term innovation wins as we go through these trials and tribulations.”
In January 2024, the Securities and Exchange Commission (SEC) approved the joint application of ARK and 21Shares to launch a spot Bitcoin ETF. As per SoSoValue, the ETF held $4 billion in net assets as of March 17.
ARK Invest also holds $518.6 million in 64,358 Coinbase Global (Nasdaq: COIN) shares and $330.9 million in Robinhood (Nasdaq: HOOD) shares, both the companies being leading crypto exchanges.
As per Arkham, the investment firm holds $3.97 billion in Bitcoin.
Wood is highly bullish on Bitcoin. On Feb. 11, she predicted that it could soar to $1.5 million. In a March 18 interview, she doubled down on her claim that the king coin could achieve the target by 2030.
