Cathie Wood disclosed that she possesses more than $7 million in bitcoin, which she acquired based on advice from Reagan-era economist Arthur Laffer, at a time when it was priced at $250.
Cathie Wood revealed that she holds over $7 million in bitcoin, having bought it on the recommendation of economist Arthur Laffer during the period it was valued at $250.
The CEO of ARK Investment Management shared her insights in a recent episode of the podcast What Bitcoin Did, hosted by Peter McCormack. She mentioned having made an initial investment of $100,000 in bitcoin, which has since surged to a value exceeding $7 million.
While Wood did not specify the year she made her bitcoin purchase, the trading price at that time indicates it was likely in 2015.
Additionally, she stated that she has not divested from that original investment.
Laffer, who was Wood’s professor at the University of Southern California, encouraged her to consider investing in Bitcoin.
He informed her that Bitcoin represented a rules-based monetary system and expressed his interest in it since the abandonment of the gold standard.
When Wood inquired about the potential scale of Bitcoin, Laffer responded by asking, “how big is the US monetary base?” During that period, Bitcoin’s market capitalization stood at approximately $6 billion, while the US monetary base was around $4.5 trillion.
Calculating based on the current price of roughly $19,250 per bitcoin, Wood has earned an impressive profit exceeding $7.6 million on her $100,000 investment.
Nevertheless, she has faced challenges achieving similar success with her firm, which she co-founded, as they have only recently been able to use ARK funds beyond securities investing.
ARK Investment Management concentrates on innovative and transformative investments. The firm’s value surged during the 2020 stock market rise, with its bets on unprofitable tech companies yielding significant profits, which drew substantial investment into its exchange-traded funds (ETFs).
While ETFs have traditionally limited themselves to investments in securities, Ark is now looking into methods to invest in bitcoin through vehicles like the Grayscale Bitcoin Trust and has subsequently incorporated them into several of its funds.
