Bitcoin reached a two-year peak recently on 4 March 2024, surpassing US$64,000 as a surge of capital propelled it close to its all-time high. Surging to US$64,285 in the early hours of the Asian trading day, this marked its highest value since late 2021. At the latest update, it had gained 2% for the session, trading at US$63,850. Bitcoin's previous record peak stands at US$68,999.99, achieved in November 2021.

The largest cryptocurrency has increased by 50% since the beginning of 2024, with a significant portion of this growth occurring in recent weeks, during which trading volume for bitcoin funds listed on US exchanges has surged.

Earlier this year, spot bitcoin exchange-traded funds were given the green light in the United States. Their introduction has paved the way for major new investors and reignited excitement and momentum similar to the build-up to the record levels seen in 2021.

One of bitcoin's greatest advocates is none other than Cathie Wood. A name that is not only familiar in Wall Street but also amongst the crypto industry. Cathie Wood is an investor and founder, CEO and CIO of ARK Invest, an investment management firm. She is also infamously known for her wild and bold predictions and amid the recent Bitcoin rally, ARK Invest initiated its selling activities of Coinbase shares by disposing of 35,509 shares worth $6.9 million. Despite the substantial increase in Coinbase stock on that particular day, closing at $193.94 with a 16.85% gain, ARK Invest stayed resolute in its choice to divest.

Throughout that week, they progressively sold off their Coinbase shares. It began by selling 46,531 shares valued at $9.3 million, with the stock closing 2.7% higher at $199.22. The selling trend continued and ended on March 1 2024, offloading 38,854 Coinbase shares, valued at nearly $8 million, with the stock closing at $205.77, up by 1.09%.

In total, ARK Invest sold 216,035 shares throughout the week, totaling approximately $43.4 million.

In addition to Coinbase, Ark Invest also divested a substantial portion of its Robinhood shares throughout the week, divesting a total of 548,619 Robinhood shares, totaling approximately $8.6 million.

ARK Invest selling off Coinbase and Robinhood holdings amid market volatility raises questions about its outlook on the companies. This move suggests a reevaluation of investment thesis, possibly reflecting Cathie Wood's team adapting strategy to evolving trends. However, this adjustment in her fund strategy should not be interpreted as a shift towards a more cautious stance on the cryptocurrency sector. During a recent interview with Peter Diamandis, Cathie Wood reiterated her prediction that Bitcoin will reach $1.5 million by 2027.

Mentor & Mentee

One financial analyst labeled Cathie Wood as "The world's best con artist" when her ARK investment fund plummeted by 70%, erasing $60 billion in value for ordinary American investors. Despite this loss, she continued to profit from her 0.75% fee arrangement, earning around $450 million.

In the fast-paced world of finance, one investment firm has been making waves with its unconventional strategies and bold predictions. ARK has gained attention for its innovative approach to investing in disruptive technologies and cutting-edge industries. They are known for their Helter Skelter stock performance, often defying traditional market trends with its out-of-left-field price predictions.

However, it has not been without its fair share of controversies. Throughout Cathie Wood's career as an investor, she has consistently attracted criticism and controversy. She has become a lightning rod for criticism primarily due to the rollercoaster-like performance of her investments, characterized by extreme highs and lows. Her unconventional and bold price predictions often catch industry observers off guard, adding to the skepticism surrounding her methods.

Something that did not sit right with people was when they found out that Cathie Wood's mentor is Bill Hwang. The both met at church one day and immediately hit it off. They both shared the belief that they can rely on their faith to help them out with business decisions. Bill Hwang had turned $200 million into a $2 billion fortune, making him one of richest man on the planet, except this empire was built on a house of cards. A house of cards of risky bets and 5:1 leverage. That's why in just 2 days, he lost 20 billion. The fastest implosion in the history of finance. Despite losing all his clients' money and his company became one of the greatest financial failures of all time, Bill still walked away a very rich man, through his personal investments and holdings. Like the sea money he put into ARK, and he also provided seed capital for Ark's first four exchange-traded funds.

This pair of mentor and mentee favours to run the playbook of getting people to invest in technology. But what might shock you next is knowing that Cathie Wood actually does not have a background in technology. You would think that to know with confidence which tech stocks is going to blow up next, it would help if you have a background in tech, perhaps engineering or AI. Back in 2021, Cathie Wood was called out when people came to the attention that she had no sort of experience in the tech or science industry listed on her LinkedIn, yet she was actively pushing others to invest.

Early Life

Cathie Wood, formally named Catherine Duddy Wood, was born on November 26, 1955, in Los Angeles, California. Her parents were immigrants from Ireland, and her father served in the Irish Army and the United States Air Force as a radar systems engineer. In 1981, Cathie Wood graduated with highest honors, summa cum laude, from the University of Southern California, where she obtained a Bachelor of Science degree in finance and economics.

Carving Her Path Into Wall Street

In 1977, she managed to secure a position as an assistant economist at Capital Group where she dedicated three years to hone her skills and expertise. Then in 1980, she made the pivotal decision to relocate to New York City and took on the role of chief economist, analyst, portfolio manager, and managing director at Jennison Associates where she stayed at for 18 years.

Later in 2001, Cathie Wood again assumed the role of chief economist for global theme strategies at Alliance Bernstein, marking the beginning of a 12-year tenure with the firm. Throughout this period, Wood faced significant challenges and criticisms as the assets under her management experienced underperformance compared to the market average during the tumultuous 2007-2008 subprime crisis.

The scrutiny and backlash stemmed from her distinctive investment approach, which favored investing in growth companies over value companies. This strategy, characterized by a focus on high-growth potential entities, inherently carries high volatility and elevated risk levels, resulting in a tendency for negative returns during market downturns. Despite the criticisms and challenges faced during this period, Cathie Wood remained steadfast in her investment philosophy, emphasizing long-term growth potential and innovation in her investment decisions.

ARK

Cathie Wood’s ideas about investing in actively managed exchange-traded funds, did not align with Alliance Bernstein's investment philosophy. Therefore, she made the decision to part ways with the company and pursue her vision by establishing her own fund, and in 2014, Ark Invest was born.

The name "Ark" holds symbolic significance, drawing inspiration from the "Ark of the Covenant" in Judeo-Christian mythology, while also serving as an acronym for "Active Research Knowledge," reflecting Cathie Wood's commitment to active management and in-depth research in her investment strategies. Through Ark Invest, Cathie Wood has continued to champion innovation and forward-thinking investment approaches, solidifying her reputation as a visionary in the financial industry.

Despite being hailed as the best stock picker of 2020 by Bloomberg News editor-in-chief emeritus Matthew A. Winkler, Cathie Wood faced significant challenges in subsequent years. Her flagship ARK Innovation fund experienced a notable decline of 24% in 2021, and by the first quarter of 2022, it emerged as the poorest performer among equity funds assessed by Morningstar, Inc.

Moreover, in early 2022, she encountered further setbacks as eight other funds under her management, including those dedicated to financial technology and space exploration, ranked among the weakest performers in their respective categories. These developments underscore the volatile nature of investing, highlighting the complexities and uncertainties inherent in the financial markets, even for seasoned professionals like Cathie Wood.

Nevertheless, the first half of 2023 marked a notable turnaround, with the fund rebounding to post a remarkable gain of 41%.

Tesla

Despite Wall Street turning bearish on Tesla Inc., Cathie Wood is seizing the opportunity to "buy the dip" in the electric-vehicle maker. In January 2024, she acquired nearly 690,000 shares of Tesla across two ARK Investment Management-operated ETFs, investing around $141 million in the stock.

A longtime supporter of Elon Musk's company, Wood's ARK research team foresees Tesla reaching $2,000 by 2027, with the robotaxi business playing a significant role. Known for backing transformative companies, Wood maintains a five-year investment horizon in her firm's strategic decisions.

2024

Cathie Wood and ARK doesn't seem to be doing so well in 2024. Over the past two months, investors have withdrawn nearly $1.0 billion from the flagship Ark Innovation ETF.

Investors are seemingly worried due to the significant underperformance of the "ARKK" compared to the Nasdaq Composite. This comparison is deemed fair as both benchmarks are growth-oriented, similar to Wood's exchange-traded fund.

As of the current writing, her fund comprises a total of 37 holdings, with a concerning 22 of them showing negative returns for the year. Additionally, six out of its top ten holdings have also decreased in value since the beginning of 2024.

Nevertheless, despite these challenges, the Ark Innovation exchange-traded fund has surged by an impressive 50% from its low point in late October.

Cathie Wood's approach is far from complacent; she thrives on intellectual challenges and curiosity, actively seeking diverse viewpoints and breaking away from traditional paradigms. She recognizes that the foundation of their success lies in a fundamental principle – rigorous research.

While discussing their research principles, Cathie Wood emphasized the importance of sharing their findings, underscoring the value of transparency and open communication. However, even she herself has been taken aback by the significant attention ARK Invest has garnered on social media platforms.

The firm's active presence on platforms like YouTube, where they boast 545,000 subscribers eagerly consuming their insights, exemplifies their commitment to engaging with investors, sharing knowledge, and fostering a community built on shared learning and exploration.

"Many people say we're crazy to give our research away, but they don't see the incredible value we receive in return. Founders, venture capitalists, and professors contact us, and we learn from their perspectives and critiques. It's like having a continuous dialogue with innovators and critics alike."

In 2024, Cathie Wood's opinions prove to still matter as she headlines across all platforms everytime she makes her next prediction or analysis.