- Cathie Wood invests in stocks that are well exposed to the blockchain and four other annoying tech topics.
- The head of research at her firm, Ark Invest, broke down their investment strategies in a recent interview with Insider.
- Brett Winton shared four stocks that could benefit from the crypto boom.
It’s been a rough start to 2022 for the cryptocurrency markets.
Bitcoin is down about 10% last week, falling back towards the $40K level. Ethereum and solana have also suffered, dropping more than 20% in the past seven days.
But there is another way to bet on the blockchain – by investing in the underlying technology that supports cryptography. Retail investors can try to determine which stocks are in the best position to benefit from widespread crypto adoption.
Ark Invest does both. Its founder and CIO, Cathy Wood, is a well-known crypto bull, having predicted that Bitcoin will eventually reach $500,000 in value. But it also owns several blockchain-related stocks in its groundbreaking innovation ETF, which is traded under the ARKK ticker.
Blockchain is one of five disruptive technology topics that Ark is investing in – and it expects the total value of the crypto-asset space to increase nearly twenty-fold over the next decade.
“Crypto assets will be worth $40 trillion by 2030,” Brett Winton, director of research at Ark told Insider in a recent interview. “This will create huge investment opportunities.”
Winton added that the best way to find potential winners in exchange-listed cryptocurrencies is to identify companies that are already incorporating “native crypto” ideas.
“The companies that are most likely to win because of cryptocurrencies are those that are more inclined towards native crypto,” he said. “This means that they are already developing the ability to support core protocols.”
Several recent investment stories reflect the increasing impact of blockchain on the stock market. In October of last year, Facebook rebranded it to Meta Platforms to show its commitment to building its metaverse. Last week, GameStop shares jumped 22% after a report said the game retailer plans to create a market for NFTs.
Winton shared his analysis of four of his top picks with Insider. He said the four could benefit from the widespread adoption of cryptocurrencies and blockchain technology.
the price: $226.53
Market value: 49 billion dollars
Analytics: “Coinbase’s development of the NFT wallet can help reform the setup process for new entrants into the crypto space,” Winton told Insider. “There is a lot of economic value to being the first company to validate NFTs or acquire ethereum.”
the price: USD 139.40
Market value: 65 billion dollars
Analytics: “Block is really well positioned on the money revolution side of things,” Winton said. “I think their devotion to Bitcoin is commendable and is the right approach overall.”
“They drive a meaningful volume of bitcoin sales right within their cash app — giving them the potential to shape the direction of bitcoin travel,” he added.
the price: $15.44
Market value: 14 billion dollars
Analytics: “Robinhood is in a good place now, because it democratizes access to investing,” Winton said. “Their clients may treat cryptocurrencies as assets that can be exchanged for other investment products.”
pointer: a store
the price: USD 1124.47
Market value: 144 billion dollars
Analytics: “Shopify just announced that they are supporting NFT sales,” Winton told Insider. “This will enable merchants to play in the NFT space – Shopify will provide blockchain players with the materials they need to sell their NFT.”