Bitcoin ETF

Bitcoin

Investors have started to move from gold to Bitcoin&nbsp;after the launch of spot Bitcoin exchange-traded funds (ETFs), according to the CEO of ARK Invest.&nbsp;
“Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin,” said ARK Invest’s Cathie Woods in a Feb. 4 chat with chief futurist Brett Winton on the firm’s YouTube channel.
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 Bitcoin to gold (log) chart shared by Wood’s ARK Invest. Source: YouTube
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Like gold, Wood expects Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;to prove itself as a “risk off asset” when the banking sector shows signs of weakness. 
The ARK Invest CEO said <a href="https://cointelegraph.com/news/bitcoin-price-jumps-in-the-wake-of-first-republic-bank-crash">the market saw this firsthand</a> in March 2023 when the United States experienced a “regional bank crisis,” leading Bitcoin’s price to shoot up 40%.
“The Regional Bank index was imploding and here again, the Regional Bank index is acting up,” she said, adding:
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 “This idea that it’s a flight to quality or a flight to safety is reasserting itself here.”
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A recent analysis by Fidelity shows <a href="https://cointelegraph.com/news/bitcoin-gold-correlation-surges-2023">Bitcoin’s correlation with gold increased</a> in 2023 and decoupled from its previously inverse relationship with interest rates despite global rates increasing worldwide.
The one-year rolling correlation between Bitcoin and gold currently sits at 0.80, <a href="https://www.longtermtrends.net/bitcoin-vs-gold/" target="_blank" rel="noopener nofollow">according</a> to Longtermtrends, which is the highest it has ever been.
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 <img src="https://s3.cointelegraph.com/uploads/2024-02/34d22b8f-5e6a-4927-b3e7-0a7c0c486bec.png" alt="" title="">
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 One-year rolling correlation between Bitcoin and gold. Source: Longtermtrends
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Regarding the spot Bitcoin ETF launch, Wood said she <a href="https://cointelegraph.com/news/short-term-spot-btc-etf-sell-ark-ceo">wasn’t surprised by the price correction</a>, which saw Bitcoin fall 20% from $48,500 a few hours after launch to $38,740 on Jan. 24, <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener nofollow">according</a> to CoinGecko. Prior to the launch, Wood predicted the launch would induce a “sell on the news” event.
However, she noted that 15 million of the 19.5 million Bitcoin currently in circulation haven’t moved in 155 days and thus remain in “strong hands,” which could indicate that most Bitcoin holders are taking a longer-term outlook.
Related: <a href="https://cointelegraph.com/news/bitcoin-now-public-good-ark-invest-president">Bitcoin is now a ‘public good’ — ARK Invest president</a>
Wood’s firm was one of 10 ETF issuers that launched a spot Bitcoin ETF on Jan. 11, named the ARK 21Shares Bitcoin ETF.
The Ark 21Shares ETF currently <a href="https://x.com/BitMEXResearch/status/1753714765136834929" target="_blank" rel="noopener nofollow">held</a> $705.8 million in Bitcoin after trading hours closed last week, BitMEX Research data shows. Only Grayscale’s GBTC, BlackRock’s IBIT and Fidelity’s FBTC products hold more Bitcoin.
ARK Invest also became a big buyer of cryptocurrency exchange Coinbase stock in February 2022 and currently holds 7.187 million shares worth $843 million across several ETFs, <a href="https://cathiesark.com/ark-combined-holdings-of-coin" target="_blank" rel="noopener nofollow">data</a> from Cathie’s ARK shows.
The firm has, however, been selling Coinbase stock rigorously since June 7, 2023, when it held 11.43 million shares.
Magazine: <a href="https://cointelegraph.com/magazine/orange-pill-children-bitcoin-kids-books/">Should you ‘orange pill’ children? The case for Bitcoin kids books</a>

‘Substitution’ of gold for Bitcoin is now underway, says Cathie Wood

Cointelegraph

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