current position:Home>Sister Wood: Grayscale is DCG’s cash cow, Bitcoin will rise to $1 million by 2030

Sister Wood: Grayscale is DCG’s cash cow, Bitcoin will rise to $1 million by 2030

2022-11-23 11:38:53Sina Finance-Blockchain

Kathy Wood, CEO and founder of ARK Investment Management, said Tuesday that Grayscale Investments is still owned by Barry Hilbert.A jewel in the crown of the Digital Currency Group (DCG).

"We know that Grayscale's trust funds are by far the most valuable part of the company and they are the cash cow. We think they will try to keep that," she said.

Wood's comments come as DCG-owned cryptocurrency brokerage Genesis is looking for fresh capital to stave off possible bankruptcy.Genesis halted user withdrawals last week following FTX's shocking debacle.Wood said Genesis' woes called into question the health of its parent company, DCG, but it was clear that Grayscale was the company's most robust business unit.

Wood has recently been "buying the bottom" of the world's largest bitcoin trust fund, Grayscale Bitcoin Trust (Grayscale Bitcoin Trust, GBTC).According to the transaction disclosure of ARK Invest, Sister Wood increased her holdings of about 315,300 shares of GBTC in the ARK Next Generation Internet ETF (ARKW.US) managed by her last week.ARKW has increased its holdings of GBTC three times this month, the first time since July 2021.Although GBTC’s discount to Bitcoin has fallen to record levels, Wood believes that the gap will narrow over time and GBTC has “significant upside.”

While the FTX debacle fueled panic among cryptocurrency investors, Wood said she was "comfortable" with GBTC's custody arrangement.Wood said: "We know that all the bitcoins behind GBTC are in Coinbase's cold storage (cold storage), and Coinbase has confirmed this. So we feel very comfortable here."

Wood said she expects Bitcoin to emerge stronger than ever after the crisis triggered by the FTX crash.She sticks to her bullish forecast that bitcoin will reach $1 million a coin by 2030 because of the digital asset's underlying technology.

The FTX debacle not only sent shockwaves through the cryptocurrency industry, but also on Wall Street.Several VC firms, including high-profile VC firms such as Paradigm, BlackRock, and Tiger Global, had backed FTX but suffered losses in the firm's collapse.Sequoia Capital, for example, wrote down its entire over $200 million investment in the exchange and apologized to investors.

Editor in charge: Zhang Jingdi

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