Cathie Wood: Bitcoin Leader, Ethereum Competition Increasing

Cathie Wood, CEO of Ark Invest, one of the prominent cryptocurrency analysts of recent times, emphasized that Bitcoin (BTC) will maintain its future leadership in the cryptocurrency market. Wood, while acknowledging Ethereum's (ETH) critical role in the decentralized finance ecosystem, stated that increasing competition in this area is narrowing ETH's market share. In her statements on the Master Investor podcast, she defined Bitcoin as a 'rules-based global monetary system,' stating that it differentiates itself from other cryptocurrencies because its supply is limited to 21 million and it has never been hacked.

Evaluating Ethereum's current situation, Cathie Wood emphasized that Layer 2 projects are starting to reduce ETH's market impact. Wood added that stablecoins are growing faster than predicted, and this situation is drawing some demand away from Bitcoin. She specifically noted that Tether dominates markets outside the US and Europe, while Circle stands out with its structure compliant with US regulations. Wood stated that blockchain-based financial systems have great potential to reduce costs, indicating that the 2.5% cut in credit card transactions will drop below 1% on the blockchain, and money transfer fees in developing countries could decrease by 25% thanks to DeFi.

Sharing her views on the future of Ethereum, Wood explicitly stated that she does not agree with Fundstrat founder Tom Lee's predictions that Ethereum could surpass Bitcoin. Wood emphasized Bitcoin's superiority by saying, "Bitcoin is both a global monetary system, has not been hacked as a technology, and is the first of a new asset class." Wood stated that Ark Invest includes Ethereum in its portfolio, adding that their regulation-approved positions are taken through BitMine Immersion. She also announced strategic investments in Solana (SOL) through Breera Sports and new projects like Hyperliquid.

Responding to Cathie Wood, Tom Lee called her the "GOAT (greatest of all time) of the crypto industry" and praised Cathie Wood's predictions regarding Bitcoin. Lee said, "She will probably come to love Ethereum more over time."