Cathie Wood: The crypto market may have bottomed out, and Bitcoin remains the top choice for institutions

RK Invest founder Cathie Wood stated that during the 1011 flash crash, Bitcoin was the most liquid among all crypto assets, often being the first to be sold off and dragging other coins down. Other coins experienced larger declines. As the relevant information has been digested, the market may have already bottomed out.

Cathie Wood emphasized that Bitcoin represents a brand new global currency system and asset class, serving as the preferred entry point for institutions into the crypto space, and should be prioritized in institutional asset allocation. Regarding Ethereum and Solana, Cathie Wood pointed out that the narrative is changing. Ethereum is the chosen infrastructure for institutions, building Layer 2 solutions on it, but with the rapid growth of L2s, 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 is more consumer-oriented in its blockchain ecosystem and has the potential to become part of institutional expansion in the future. In terms of asset allocation, Cathie Wood mentioned 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 holding a small exposure to Ethereum and Solana.

Currently, crypto-related assets account for about 12%–13% of the portfolio, which is a relatively appropriate 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, as this decision could become an important variable affecting the next phase of the market.