Cathy Wood Discusses the Future Strategy of Cryptocurrency Investment ~ The Intersection of Innovation and the AI Revolution

ARK Invest’s CEO Kathy Wood revealed bold investment strategies and market outlooks on a podcast. In the August 2025 interview, the overall picture of cryptocurrency investment was discussed, from Bitcoin valuation theories to regulatory environments. Kathy Wood’s investment philosophy focuses not just on short-term gains but on long-term value changes driven by technological innovation.

The Path to $1.5 Million Bitcoin Remains Unchanged

Kathy Wood previously made a bullish prediction that Bitcoin would reach $1.5 million by 2030. This outlook remains fundamentally unchanged. In a bullish scenario, there is also potential for Bitcoin to surpass $1 million within five years.

The core values Bitcoin serves are twofold. One is to act as an entry point for institutional investors investing in digital assets. The other is its positioning as a digital version of gold. While the explosive growth of stablecoins (USDT, USDC, etc.) has exceeded expectations, Kathy Wood is confident that Bitcoin’s strategic role remains unshaken.

Digital Infrastructure Revolution Driven by AI and Blockchain

With regulatory shifts, the era of agent-based AI is approaching. These AI assistants will make autonomous decisions and collaborate, with smart contracts being essential to their foundation. The integration of blockchain and AI could reduce settlement costs from the traditional 3.5% to 1%.

As global asset management is expected to reach $250 trillion within five years, this 1% cost reduction signifies a significant efficiency improvement. Kathy Wood argues that the true driver of change is the potential of AI, and investors should focus on its limits.

Core Portfolio of ARK Invest: BTC, ETH, SOL

Currently, the core of ARK Invest’s portfolio consists of Bitcoin, Ethereum, and Solana. Tracking institutional protocol choices shows Ethereum maintaining an advantage as a Layer 2 platform. Its security benefits are highly valued by financial institutions.

In the cryptocurrency stock market, Coinbase, Circle, and Robinhood form a strategic triangle. These companies are seen not just as investment targets but as indicators of the entire industry’s development, as pioneers of the crypto ecosystem. Kathy Wood uses quantitative analysis tools to continuously monitor the risk-return characteristics of digital assets.

Kathy Wood’s Warning on the Conflict Between Regulation and Innovation

The regulatory environment in the US is extremely challenging for innovative companies. Kathy Wood is concerned about the tragic trajectory of regulations over the past four years and is seriously considering relocating research functions overseas. She views blockchain technology as a symbol of the next-generation internet revolution, yet believes the US is actively abandoning this large-scale technological innovation.

Ensuring transparency is also a key strategy. The practice of freely sharing research reports and publishing transaction records during the pandemic unexpectedly spread rapidly in Asia, contributing to ARK Invest’s brand building.

The Limits of AI as an Investment Opportunity

Traditional quantitative strategies and benchmark-linked investments are destined to become fully commoditized by AI. However, ARK Invest, led by Kathy Wood, takes a fundamentally different approach. Its reliance on original research and creative processes to predict the future cannot be replaced by AI.

The synergistic effect of AI and human researchers is what elevates investment capabilities to new heights. AI can reduce the burden of complex analyses, such as the “Laws of the Light” (the principle that production doubles while costs decrease at a constant rate), but creative insights can only be made by humans, according to Kathy Wood.

The current market is healthy, with investment opportunities expanding into cutting-edge fields like AI, healthcare, genetic sequencing, and emerging assets such as blockchain. Kathy Wood describes this as an “expected development” and believes that investors who maintain their passion for innovation will be the winners of the next era.