Ark Invest CEO Eyes Crypto Turnaround Amid Smells of a Fed Pivot

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The managing director of crypto and technology investment firm Ark Invest believes crypto assets will see a huge turnaround this year as inflation drops and the Fed pivots.

In a corporate video blog on January 23, Cathie Wood, CEO and CIO of Ark Invest, began with an overview of the macroeconomic outlook. She said there were all sorts of signals pointing to lower inflation, suggesting the Fed should pivot soon.

This would benefit risky assets such as crypto as the macro outlook improves and financial belts loosen.

Cathie Wood and Brett Winton of Ark Invest on their outlook for 2023. Source: Ark Invest

She added that the firm believes inflation will come down to the Fed’s 2% target level. However, Wood predicted that inflation could fall below this level and even into negative territory because the money supply has fallen.

The market is waiting for a signal from the Federal Reserve, she said, adding that we believe this will happen in the first half of 2023. She said Ark Invest’s portfolios should do very well if interest rates are about to fall below expectations.

Ark has a crypto assets fund, blockchain investments, a disruptive innovation fund, and six exchange-traded funds (ETFs) active in technology and fintech.

Meanwhile, Arks’ chief futurist Brett Winton spoke about artificial intelligence (AI), noting that progress would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.

Public blockchains, cryptocurrencies, and crypto assets currently going through turbulent times will become even more differentiated for their scarcity in a time of plenty.

He added that when there is a turning point in the macroeconomic environment and the Fed changes its positions, the opportunity for expansion and value realization within the venture capital and public market space is even bigger.

Related: Cathie Woods ARK Enters 2023 With $5.7M Coinbase Stock Buy

Wood concluded that these technological innovations are deflationary, which will lead to a boom in the products and services associated with this innovation.

Ark Invests’ most recent move was to leverage some of its Grayscale Bitcoin Trust (GBTC) holdings and load 320,000 Coinbase (COIN) shares worth around $17.6 million.

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