Cathie Wood is known to advocate for innovation, especially for Bitcoin. In a recent post, she merged her passion for the industry with her belief in the transformative potential of artificial intelligence (AI) by discussing its possible applications. Wood took to X (formerly known as Twitter) and posted the following:
“The convergence between Bitcoin – and AI could transform the way companies organize, causing a collapse in costs and an explosion in productivity. I was blown away by the possibilities these brilliant entrepreneurs are creating.”
She hinted at a soon-to-be-released podcast with herself and other thought leaders discussing this in more detail. Ark Invest, an investment management firm based in Florida, founded and led by Wood, is well known for its high-risk appetite and affinity to tech and innovation.
Recently Ark sold some of its Nvidia stocks and increased holdings in AI stocks Uipath and Zoom Video Communications; other AI companies on Wood’s radar are Teladoc Health and communications company Twilio.
Transformative Possibilities
In August 2023, Ark Invest published a report on AI titled “Investing in Artificial Intelligence: Where Will Equity Values Surface?”. The outlook by Ark Invest, as outlined in the research report, is optimistic about the potential of artificial intelligence (AI). They believe the rapidly evolving AI landscape will likely disrupt major segments of traditional broad-based benchmarks.
Ark Invest points out that AI training costs have consistently declined, making AI more accessible and cost-effective. However, in ARK’s view, common benchmarks may not effectively capture the opportunities presented by AI. To address this, the firm suggests that investors should complement, hedge, or diversify their core benchmark exposures by investing in alternative exposures.
Ark Invest offers strategies like the Disruptive Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) as options for investors to position themselves to benefit from AI growth. Wood said in a post from early September: “Since 2014, our analysts have been dissecting the AI revolution. While big benchmarks highlight mega tech, we think AI’s true potential lies beyond them in focused, agile companies.”
Innovation is not Far Away
While innovation is still ahead of us, with many potential opportunities, AI and crypto seem to be here to stay. One example of the disruptive power that the combination of AI and crypto has is showcased by Bybit. Just days ago, the popular exchange launched TradeGPT, an AI-based trading assistant. According to a blog post, it can answer market analytical and technical questions. Bybit said: “The tool utilizes Bybit’s in-house ToolsGPT and ChatGPT’s machine-learning capabilities […] and it is part of a broader trend of cryptocurrency exchanges using AI to enhance user experience and provide market insights.”