During the ongoing banking crisis in the United States, the perception of cryptocurrencies has shifted from a risky asset to a protective asset, according to Cathie Wood, the CEO of investment fund ARK Invest.
Wood blames the US Federal Reserve and other regulators for the collapse of Silicon Valley Bank, Signature, and Silvergate. She criticized the Fed for failing to prevent bank failures despite clear signs of trouble.
Wood also pointed to the lack of investment capital as a factor in the crisis, and expressed surprise that banks and regulators had not convinced the Fed of the impending disaster.
In her view, cryptocurrencies were not the cause of SVB and Signature’s bankruptcy, but rather the Fed’s policy of raising rates and the lack of venture capital funding.
The CEO of ARK Invest observed that US regulators are now closely watching the cryptocurrency industry in the aftermath of the collapse of FTX, and harshly punishing any violations.
Nevertheless, regulators continue to blame cryptocurrencies for everything that happens, using the industry as a scapegoat, according to Wood.
In fact, on March 15, Wood tweeted that decentralized cryptocurrencies such as Bitcoin and Ether are not afraid of banking crises, and are actually increasing in value.