According to BlockBeats, on December 14th, Cathie Wood, founder of RK Invest, stated that during the 10/11 flash crash, Bitcoin was the most liquid of all crypto assets, typically being the first to be sold off and dragging down other cryptocurrencies. Other cryptocurrencies experienced even larger declines. With the relevant information now digested, the market may have bottomed out. Cathie Wood emphasized that Bitcoin represents a completely new global monetary system and asset class, making it the preferred choice and starting point for institutions entering the crypto space, and should be ranked first in institutional asset allocation.
Regarding Ethereum and Solana, Cathie Wood points out that the narrative is shifting. Ethereum is the infrastructure of choice for institutions building Layer 2 solutions on it, but with the rapid growth in the number of L2 solutions, it remains to be seen whether it faces the risk of "commoditization." Nevertheless, the Ethereum ecosystem continues to expand, and Ethereum is our second choice. Solana leans more towards a consumer-facing blockchain ecosystem and has the potential to become part of institutional expansion in the future.
Regarding asset allocation, Cathie Wood stated that since the flagship strategy cannot directly hold crypto ETFs, ARK primarily participates in the crypto industry through stocks, including Coinbase, Robinhood, and stablecoin-related company Circle, while also holding a small amount of exposure to Ethereum and Solana. Currently, crypto-related assets account for approximately 12%–13% of the portfolio, a relatively appropriate overall proportion.
She added that the market is watching whether large traditional financial institutions (such as Morgan Stanley, Bank of America, Wells Fargo, UBS, etc.) will formally introduce Bitcoin through ETFs in this cycle, and this decision may become an important variable affecting the next stage of the market.
