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AI, Electric Vehicles, and Bitcoin Halving: Cathie Woods Expects “Solid Appreciation” in These Sectors

Last Updated April 17, 2024 12:28 PM
Giuseppe Ciccomascolo
Last Updated April 17, 2024 12:28 PM

Key Takeaways

  • Cathie Wood believes Artificial Intelligence is still in its early stages, comparing it to the early internet in the 1990s.
  • The Ark Invest CEO predicts a significant increase in EV sales, reaching 74 million units globally by 2030.
  • She’s also betting big on Bitcoin and expects a positive market reaction to the upcoming halving.

Cathie Wood, the CEO of ARK Investment Management, remains at the forefront of investing in transformative technologies. With a focus on artificial intelligence (AI), electric vehicles, and the cryptocurrency market, Wood shared insights during an interview, highlighting her positive outlook on these industries.

Wood’s comments on the significance of the Bitcoin halving event displays her confidence in Bitcoin’s long-term potential.

With more institutions recognizing Bitcoin’s value proposition and the growing adoption of digital assets, Wood remains steadfast in her conviction that Bitcoin will continue to assert its dominance as a store of value and a revolutionary financial asset.

AI Will Impact Broader Innovation

Wood says we are merely scratching the surface regarding its impact on both enterprises and consumers. “Right now, we feel we’re in the equivalent of the early 90s when it came to the Internet. We had just begun and we had miles to go. In fact, we’re still learning how powerful the Internet is,” she said during an interview .

Ark’s CEO believes there’s an underestimation of the profound catalytic effect AI will have on innovation, spanning robotics, energy storage and blockchain technology.

ARK Investment recently announced an investment in OpenAI. On Thursday, April 16, 2024, ARK emailed its clients about this investment in the creator of ChatGPT, backed by Microsoft.

Lower Price To Boost EV Market

In her latest research paper, “Big Ideas for 2024 ,” Wood also predicts a substantial increase in EV sales, projecting a rise from approximately 10 million units globally in 2023 to 74 million by 2030.

The CEO of Ark Investment Management anticipates that factors such as improved range and reduced range anxiety will contribute to this shift. Moreover, she foresees a significant drop in electric vehicle prices to the $20,000 to $25,000 range within the next 5 to 10 years. “Historical analysis suggests that this price range historically triggers substantial increases in auto sales, adjusted for inflation. As such, they project electric vehicles to capture around 70% of the market share by that time, primarily driven by pricing considerations,” she said.

However, Wood acknowledged the challenges many EV manufacturers face in achieving profitable scalability. Currently, only Tesla and BYD have demonstrated the ability to rapidly expand operations, leading to cost advantages that remain elusive for their competitors.

Several companies, including General Motors, Volkswagen, and Ford, are scaling back their EV market presence. This is due to aggressive pricing strategies by already profitable market leaders.

Bitcoin Halving An Important Milestone

There’s been considerable anticipation regarding the impact of the Bitcoin halving. While there may have been some preemptive market movements, Wood anticipated that this halving event would garner heightened attention this year, similar to previous halving events, particularly as more institutions become involved and understand its implications. “Consequently, we expect outcomes akin to past occurrences, characterized by substantial appreciation over time, albeit with expected volatility,” she said.

“Our portfolios have a diversified exposure to innovation compared to traditional benchmarks, and therefore, the volatility is higher. But suppose we’re right and we’re moving into these themes, onto these platforms in their early days, based on the convergence between and among the technologies that we’re analyzing. In that case, the growth rate should be longer term, what we call super-exponential, rapid growth accelerating as artificial intelligence really catalyzes or accelerates the pace of innovation.”

ARK recently introduced a Bitcoin ETF, the ARK 21Shares Active Bitcoin Futures Strategy ETF  and has made significant investments in the leading cryptocurrency. Currently, the ETF holds a net asset value of $2.76 billion worth of Bitcoin.

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