TLDR
- Cathie Wood compares Hyperliquid’s early potential to Solana’s growth.
- ARK Invest holds Bitcoin, Ethereum, and Solana as key crypto assets.
- Wood sees Bitcoin as the dominant cryptocurrency with a fixed supply.
- DEXs like Hyperliquid are gaining popularity amid rising competition.
Cathie Wood, CEO of ARK Invest, recently compared the decentralized exchange protocol Hyperliquid to Solana during its early days. In an interview on the Master Investor podcast, she shared her excitement about Hyperliquid, noting its potential in the competitive landscape of perpetual futures decentralized exchanges (DEXs). However, despite acknowledging the promise of new projects, Wood reaffirmed her belief that Bitcoin will remain the core of her long-term crypto thesis.
Hyperliquid A New Protocol with Potential
Cathie Wood expressed excitement about Hyperliquid, describing it as a promising new project that reminds her of Solana’s early days. She noted that Solana, which is now a well-established player in the blockchain space, was once seen as a new entrant with potential. Hyperliquid, according to Wood, is gaining attention as a decentralized exchange protocol, particularly in the competitive space of perpetual futures.
Although she did not confirm any position in Hyperliquid, Wood emphasized that it is a project to watch in the future. As competition grows in the decentralized exchange space, especially with other players like Aster, which recently launched a token, Hyperliquid’s development could shape its future role in the market.
Wood’s observation highlights the emerging interest in new protocols even as established players like Bitcoin and Ethereum continue to dominate the industry.
ARK Invest’s Crypto Holdings
ARK Invest, under Cathie Wood’s leadership, currently holds Bitcoin, Ethereum, and Solana in its public funds. The firm’s exposure to Solana is specifically tied to the Solana treasury through Breera Sports, which has support from Middle Eastern investors. Wood clarified the firm’s ties to Solana, emphasizing that it is part of ARK Invest’s broader strategy to focus on key assets in the crypto space.
Wood further explained that ARK Invest’s approach is to focus on a narrow set of assets rather than a broad array of cryptocurrencies. While the firm holds some derivatives, such as Uniswap and other market protocols linked to Solana, its primary focus remains on the top three assets: Bitcoin, Ethereum, and Solana. This focus aligns with Wood’s broader thesis about the long-term potential of specific networks in the crypto space.
Bitcoin’s Role in the Future of Crypto
Despite the rise of new projects and protocols, Cathie Wood maintains that Bitcoin remains the dominant cryptocurrency due to its fixed supply and position as a monetary system. She believes that Bitcoin’s role in the crypto space is unique and irreplaceable, especially as a store of value. Wood stated that Bitcoin will continue to play a central role in ARK Invest’s long-term strategy for crypto, given its stability and resilience over time.
Wood’s belief is that the future of cryptocurrencies will likely be dominated by a small number of networks. While Ethereum plays a significant role in decentralized finance (DeFi), Bitcoin remains at the core of ARK Invest’s thesis. Wood noted that the supply of Bitcoin is fixed, which contributes to its perceived value and role in the broader financial system.
Growing Interest in DEXs
The adoption of decentralized exchanges (DEXs) has been on the rise, particularly among retail traders and semi-professional quants. This surge in interest is driven by incentives such as airdrops, low fees, and fast execution times. Jamie Elkaleh, CMO of Bitget Wallet, highlighted that DEXs like Hyperliquid and dYdX v4 are gaining traction due to their ability to offer speed and liquidity comparable to centralized exchanges (CEXs).
However, institutional investors still rely heavily on CEXs for access to fiat currencies, compliance, and brokerage services. Despite this, Elkaleh pointed out that the gap in performance between DEXs and CEXs is narrowing. As the competition among DEXs intensifies, platforms like Hyperliquid are set to play an important role in the evolution of decentralized finance.
