ARK Invest’s Cathie Wood: Ethereum Is More Undervalued Than Bitcoin
The CEO of ARK Invest, Cathie Wood, has long said that Bitcoin (BTC) is largely undervalued and has a lot of growing to do in the coming years. However, Wood recently has pointed out that the second largest digital asset, Ethereum is even more undervalued than BTC.
Wood appeared on CNBC’s Squawk Box to talk about the crypto and the current market situation. The CEO said that she believes that Ethereum was still greatly undervalued. She used bitcoin, the largest cryptocurrency in the market, as a measure stick. She believes that BTC is still greatly undervalued, and explained that as undervalued as bitcoin is, ethereum is still way more undervalued compared to it.
This year has been very good for Ethereum, and much to the success is cited to the utility of the digital asset. Decentralized finance (DeFi) has seen tremendous success despite been only a year old and ethereum hosts the majority of DeFi activities. Wood also believes that DeFi was the driving force behind the digital asset’s success.
“The fact that it is the venue, or the protocol, for DeFi and for NFTs suggests to us that it is even more undervalued than Bitcoin is, just because there are new worlds growing up on top of it.”
Wood said that Ethereum is still in its infancy and has a long way to go, whereas bitcoin has already been established for being a monetary system. She added that institutions are going to move more into DeFi and NFTs, which would “accelerate” its growth.
The CEO, who remains bullish on Bitcoin, noted that institutional investors were moving into the digital asset. Bitcoin has become impossible to ignore and Wood explained that institutions have to explore it.
“Institutional managers have to look at new asset classes that are evolving and that have low correlation. That’s the Holy Grail in terms of asset allocation.”
Bitcoin has no doubt had a good run in its over a decade of existence. However, Cathie Wood expects even more growth for the asset. In September, the CEO predicted that with institutions moving more into bitcoin, it could rise to as high as $500,000 in the next five years.
