Ark Investment Management founder Cathie Wood praised Tesla and Square’s decision to invest in bitcoin, but said a widespread corporate adoption of the cryptocurrency will still take more time.
“They’re on the right side of change when it comes to innovation,” Wood said about Tesla and Square during a Wednesday CNBC interview.
Tesla revealed last week it had bought up $1.5 billion of bitcoin in January and plans to begin accepting the cryptocurrency as a form of payment in the near future. Meanwhile Square purchased $50 million worth of bitcoin in October of last year, which represents approximately 1% of the firm’s total assets.
The manager, who returned more than 150% in 2020, said it’s wise for Tesla and Square to “diversify their cash.” Tesla is the top holding in Wood’s flagship fund, the Ark Innovation ETF. Square is the third. Read more…..
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Bitcoin does not fit the narrow definition of what a Ponzi scheme is, said Lyn Alden, founder of Lyn Alden Investment Strategy, who said that $50,000 is the next resistance level.