ARK Invest CEO Cathie Wood recently expressed her belief in the transformative potential of the convergence between artificial intelligence (AI) and Bitcoin, predicting that this synergy could revolutionize business organization leading to reduced costs and increased productivity. This vision was shared by Wood on Wednesday on X, formerly known as Twitter.
Wood, a known advocate for innovation and particularly Bitcoin, hinted at an upcoming podcast where she will join other thought leaders to delve more into this subject. Her investment management firm, Ark Invest, is renowned for its high-risk appetite and affinity for tech and innovation.
Ark Invest has been adjusting its portfolio in line with this vision. The Florida-based firm recently divested some of its Nvidia (NASDAQ:NVDA) stocks while increasing holdings in AI stocks Uipath and Zoom Video Communications (NASDAQ:ZM). Other AI companies Wood is monitoring include Teladoc (NYSE:TDOC) Health and Twilio (NYSE:TWLO).
In August 2023, Ark Invest published a research report titled “Investing in Artificial Intelligence: Where Will Equity Values Surface?”. The report expressed optimism about the potential of AI, foreseeing major disruptions in traditional broad-based benchmarks due to the rapidly evolving AI landscape.
The report also highlighted the declining costs of AI training, making the technology more accessible and cost-effective. However, Ark Invest believes common benchmarks may not effectively capture the opportunities presented by AI. As a solution, they recommend investors diversify their core benchmark exposures by investing in alternative exposures.
Ark Invest offers strategies such as the Disruptive Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) as pathways for investors to potentially benefit from AI growth. In a post from early September, Wood stated: “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.”
In related news, cryptocurrency exchange Bybit recently launched TradeGPT, an AI-based trading assistant capable of answering market analytical and technical questions. This development is part of a broader trend of cryptocurrency exchanges leveraging AI to enhance user experience and provide market insights.
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