Cathie Wood, the founder of Ark Investment Management LLC, predicts a surge in mergers and acquisitions after President-elect Donald Trump defeats Vice President Kamala Harris in the 2024 election.
What Happened: “M&A has been prevented by the FTC. That is going to change,” Wood, popularly known for leading ARK Innovation ETF ARKK said in an interview with Bloomberg Television on Thursday.
The seasoned investor continues to maintain her optimistic view on cryptocurrencies, projecting that Bitcoin BTC/USD may hit $1.5 million by 2030. Wood highlighted how Bitcoin is becoming “more scarce than gold,” pointing out that after the April halving, its annual supply increase has decreased to 0.9%.
According to Wood, production rises in tandem with the price of gold. Bitcoin prevents that from occurring.
Her remarks come as Bitcoin has gained 120% this year and is now trading above $100,000. Wood highlights Bitcoin’s fixed supply cap of 21 million coins and credits the surge to increased institutional interest and regulatory certainty.
The emergence of Bitcoin ETFs has significantly increased retail investor interest, with prominent offerings such as iShares Bitcoin Trust IBIT, Grayscale Bitcoin Trust GBTC, Fidelity Wise Origin Bitcoin Fund FBTC, ARK 21Shares Bitcoin ETF ARKB, Bitwise Bitcoin ETF BITB, Grayscale Bitcoin Mini Trust BTC, ProShares Bitcoin ETF BITO, and Volatility Shares Trust 2x Bitcoin Strategy ETF BITX, providing various options for investors seeking exposure to the cryptocurrency market.
Why It Matters: The Ark Innovation ETF manager, known for her high-conviction bets on disruptive technology, has recently adjusted her fund’s positions. ARKK sold 14,016 shares of Tesla Inc. TSLA at $436.17 and 33,402 shares of Palantir Technologies Inc. PLTR at $74.21 on Thursday.
Wood also expressed optimism about broader market participation under Trump’s presidency. “The market’s going to broaden out right now and reward companies who are at the leading edge of innovation,” she said during a previous CNN appearance, though cautioning that growth wouldn’t be linear.
Her outlook aligns with Bank of America analysts’ predictions of increased M&A activity, particularly in banking and biotech sectors, under a Republican administration. Analysts note that financial sector deals historically increased by 50% during Republican presidencies.
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Image via Ark Invest
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