Ark Investment Fears Domino Effect of FTX Collapse
Cathie Wood’s Investment Firm Warns Of Domino Effect of FTX
Ark Investment called FTX’s insolvency as one of the most damaging events in crypto history.
Cathie Wood’s investment management firm believes FTX collapse could delay institutional crypto adoption by years.
In a newsletter, the firm's analysts wrote that FTX insolvency will give a reason to regulators to take draconian measures.
Ark Investment has heavily invested in the US-based crypto exchange Coinbase.
The ripple effect of FTX collapse can already be seen in the crypto industry as earlier BlockFi suspended withdrawals.
The firm also said the silver linings of FTX's demise were that Bitcoin and Ethereum did not lose by much.
“ARK’s conviction in the long-term promise of public blockchains across money, finance, and the internet is not wavering,” the firm said.