Cathie Woodthe founder of Ark Investment Management LLCpredicted a surge in mergers and acquisitions following Donald Trump’s victory over Vice President Kamala Harris in the 2024 election.
What happened : “Mergers and acquisitions have been prevented by the FTC. That’s going to change,” Wood said in an interview with Bloomberg Television on Thursday.
The experienced investor continues to maintain his bullish view on cryptocurrencies, predicting that the Bitcoin (CRYPTO:BTC) could reach $1.5 million by 2030. Wood pointed out that Bitcoin is becoming “rarer than gold,” noting that after the April halving, its annual supply growth decreased to 0.9%.
Production increases in tandem with the price of gold, according to Wood. Bitcoin prevents this.
The remarks come as Bitcoin has gained 120% this year and is now trading above $100,000. Wood highlights Bitcoin’s hard supply cap at 21 million coins and attributes the increase to increased institutional interest and regulatory certainty.
The emergence of Bitcoin ETFs has significantly increased interest among retail investors, with major offerings such as iShares Bitcoin Trust (NASDAQ:IBIT), Grayscale Bitcoin Trust (NYSE:GBTC), Fidelity Wise Origin Bitcoin Fund (BATS:FBTC), ARK 21Shares Bitcoin ETF (BATS:ARKB), Bitwise Bitcoin ETF (NYSE:BITB), Grayscale Bitcoin Mini Trust (NYSE:BTC), ProShares Bitcoin ETF (NYSE:BITO) et Volatility Shares Trust 2x Bitcoin Strategy ETF (BATS:BITX), providing various options for investors looking to gain exposure to the cryptocurrency market.
Why it matters : ETF manager Ark Innovation, known for its high-conviction bets on disruptive technology, recently adjusted her fund’s positions. ARKK sold 14,016 shares of Tesla Inc. (NASDAQ:TSLA) at $436.17 and 33,402 shares of Palantir Technologies Inc. (NYSE:PLTR) at $74.21 on Thursday.
Wood also expressed optimism about broader market participation under Trump’s presidency. “The market is going to expand right now and reward companies at the forefront of innovation,” she said in a previous appearance on CNN, although she cautioned that growth would not be linear.
Wood’s view is aligned with analyst forecasts. Bank of America on increased M&A activity, particularly in the banking and biotechnology sectors, under a Republican administration. Analysts note that financial sector transactions have increased by 50% during Republican presidencies.
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L’image via Ark Invest
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