Why ARK’s Cathie Wood Blames ESG for the Crypto Crash

ARK Invest ETF manager Cathie Wood spoke at CoinDesk’s Consensus 2021 yesterday and she discussed why Bitcoin (CCC:BTC-USD) and other cryptos were taking a beating.

A render of bitcoin surrounding a smartphone.

Source: Wit Olszewski/Shutterstock,com

During a prerecorded interview, she went over the fall of crypto over the last couple of weeks while looking over why that happened. She contributes the fall to the environmental, social, and corporate governance and Tesla (NASDAQ:TSLA) CEO Elon Musk.

Here’s what Cathie Wood said about the fall of BTC in a portion of that interview.

“It was precipitated by the ESG [environmental, social and governance] movement and this notion, which was exacerbated by Elon Musk, that there are some real environmental problems with the mining of bitcoin. A lot of institutional buying went on pause. Elon probably got a few calls from institutions. I noticed that BlackRock is [Tesla]’s number three shareholder and Larry Fink is the CEO. He is focused on ESG and especially on climate change. I’m sure BlackRock registered some complaints and perhaps there are some very large holders in Europe who are extremely sensitive to this.”

Another factor that played into the decline of Bitcoin was China adding extra regulations around the crypto. Cathie Wood doesn’t see that as a long-term problem. She believes that regulators will ease up on crypto over time to avoid missing out on ab institutional change taking place.

Cathie Wood continues to hold a bullish outlook on Bitcoin. She believes that the crypto could rise to $500,000. That would be a massive boost over its price of roughly $36,750 as of this writing.

BTC was down 8.8% as of Friday morning but is up 26.7% since the start of the year.

Investors looking for more crypto news should keep scrolling.

That includes what some of the biggest names in the crypto space are doing lately. Among that is a look at Dogecoin (CCC:DOGE-USD), whose buying and selling BTC, as well as why traders shouldn’t give up on Ankr (CCC:ANKR-USD) just yet. Check out all of that at the links below.

More Crypto News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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