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- Cathie Wood compares Hyperliquid to Solana’s early years, calling it the new kid on the block.
- ARK Invest holds Bitcoin, Ethereum, and Solana, with exposure to Solana via Breera Sports.
- Despite rising DEX competition, Bitcoin remains central to ARK’s long-term investment strategy.
Cathie Wood, CEO of Ark Invest, has recently likened Hyperliquid to the initial years of Solana, saying that it is the new kid on the block. Speaking on the Master Investor podcast, Wood said that Hyperliquid brought to mind Solana back in its early days. She pointed out that Solana has been beneficial and is currently one of the most powerful cryptocurrencies.
ARK Invest already owns Bitcoin, Ethereum, and Solana in public funds. Wood, however, indicated that ARK has acquired exposure to Solana via Breera Sports, which is a project sponsored by the Solana treasury. Middle Eastern investors are also in support of the project. Wood stated that economist Art Laffer plays the advisory role within Breera, further cementing the relationship between ARK and Solana.
Cathie Wood Interested in Hyperliquid Amid Growing DEX Competition
Wood did not establish the status of ARK in Hyperliquid but said she was interested in the protocol. Decentralized exchanges (DEXs), especially in the perpetual futures market, have increasingly become more competitive.
Hyperliquid is struggling with increasing competition with Aster, which has experienced an increase in volumes due to the introduction of its token. This expansion has made Aster be ahead of Hyperliquid in market activity.
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Although the number of tokens increased, Wood underlined that Bitcoin stays the leader in the cryptocurrency market. She said that there are not going to be very many cryptocurrencies. She cited the continuous supply and the resistance of Bitcoin as key factors for its crucial role in her investment strategy.
ARK Invest Focuses on Key Players: Bitcoin, Ethereum, and Solana
Although Ethereum contributes to decentralized finance (DeFi) as a considerable force, Wood restated that at ARK Invest, Bitcoin is the main asset. She also recognized the increased role of stablecoins but emphasized that it does not diminish the role of Bitcoin.
ARK has at least some derivatives, such as Uniswap and Solana-related market protocols. Wood noted that the company remains constrained in its operations, focusing solely on what she identifies as the key players. Those are the top three currently, she said.
Retail traders are adopting decentralized exchanges. Jamie Elkaleh, Bitget Wallet CMO, remarked that DEXs are as fast and liquid as centralized exchanges. Nevertheless, fiat access and regulatory cover are still centralized towards fiat and are still preferred by institutional investors through exchanges. The competition on the cryptocurrency market continues to grow, with the blockage between DEXs and CEXs becoming slim.
Also Read: Vanguard Prepares to Allow Brokerage Clients Access to Crypto ETFs Amid Rising Investor Demand
