Cathie Wood: Deflation Is A Major Risk Going Forward, Still Bullish On Bitcoin Price

In an interview with Bloomberg, ARK Invest CEO Cathie Wood discusses why Ark Innovation (ARKK ) increased its stake in Coinbase (COIN ) after the SEC sued. According to the disclosure statement, three ARKK funds purchased approximately $21.8 million worth of COIN on June 6, 2023. In response, Wood said that SEC enforcement would result in Coinbase becoming the only cryptocurrency exchange in the United States. Of course, this assumes that Coinbase will prevail in its legal battle with the SEC, and Wood believes that the charges against the two exchanges are different. While both companies are facing lawsuits from the SEC for allegedly trading and pledging unregistered securities, Coinbase may also face more serious charges. Wood reiterated her view of bitcoin as a hedge against inflation. But Wood also noted that she sees deflation as a major risk going forward. Nonetheless, the company remains bullish on the bitcoin price, sticking to its $1 million target.