ARK Invest: Stock Picks & Accuracy

ARK Invest believes AMD is well-positioned to capture significant share in the growing AI compute market, leveraging its successful playbook from competing with Intel in CPUs. They highlight AMD's strong product portfolio across CPUs and GPUs, its fabless model, and upcoming AI accelerator solutions like Helios, which they believe can be more performant per dollar than Nvidia's offerings for certain workloads. Customer announcements with major players like OpenAI, Meta, and Oracle further support their optimism for demand.

“With their breadth of portfolio across CPU and GPU architectures and the demonstrated execution of the AMD team, we think that they can capture a reasonable share of the future AI compute TAM going off a very small base that they have today.” — ▶ Watch clip

ARK Invest sees AMD as a compelling story in the AI compute market, poised to gain significant market share in data center GPUs, similar to its success in data center CPUs. They highlight AMD's competitive chips, customer wins with OpenAI and Meta, and upcoming rack-scale solution (Helios) as key drivers for challenging Nvidia's dominance.

“And a really compelling story is AMD who's coming to market with uh more competitive chips having competed against Nvidia on in the gaming space on the consumer side and has competed against Intel very successfully in the data center side. AMD went from uh almost 0% market share in 2017 to 40% today in data center CPUs. And we think there's a similar share gain story possible for AMD in the data center space with regards to GPUs.” — ▶ 20:00

ARK Invest highlights that OpenAI is investing in AMD through warrants and has agreed to purchase tens of billions of AMD chips. This deal reduces OpenAI's single-supplier risk with Nvidia and positions AMD's chips, which are competitive for AI inference, for significant demand. The analyst believes this is a strategic move for both companies, with AMD benefiting from increased sales and a potential equity stake from a major AI player.

“OpenAI is investing in AMD through warrants and agreeing to um buy um billions, tens of billions, lots of AMD chips.” — ▶ 1:00

Cathie Wood expresses caution regarding AMD, noting that expectations for AI hardware companies might be overinflated. She points to recent market reactions to earnings from companies like Alphabet and AMD, suggesting that the market's expectations have gotten ahead of themselves, implying potential volatility or a pullback.

“the expectations do get ahead of themselves we saw that with you know Alphabet I guess earlier this week and AMD just the expectations had gotten ahead and you're going to have the the the two and fro” — ▶ 31:50

ARK views Fox's acquisition of Roku as a steal, valuing Roku's massive footprint in over 100 million US households and its dominant position in Connected Television (CTV). They believe the merger will create significant synergies by combining Fox's content library and media rights with Roku's distribution powerhouse, unlocking new advertising inventory, especially in sports, which Roku previously lacked the balance sheet to access.

“From from a footprint and distribution standpoint, it's a massive asset that I think Fox is recognizing and probably getting a steal here at $22 billion.” — ▶ 22:00

ARK views Roku as a key player in the connected TV space, which is seeing more people streaming than ever before. They believe ad spend will follow viewership, projecting connected TV ad spend to eclipse linear TV ad spend by 2027 and grow to $73 billion by 2030, driven by streaming companies signing deals with sports leagues.

“the connected TV space this is an area of Interest for us at ARC we've been talking about it for a number of years and what we're seeing is more people than ever before streaming this is your Netflix's your HBO Max your Disney plus and the operating systems that power them like Roku and Fire TV.” — ▶ Watch clip

ARK Invest believes Roku is well-positioned in the connected TV (CTV) space due to its significant scale (80 million active accounts), high engagement (100 billion+ hours streamed), and strong first-party data for monetization. They argue that Roku's operating system brand and user experience are superior to competitors like Vizio, and that the shift from linear TV to streaming, coupled with the under-monetization of CTV advertising, presents a massive long-term opportunity for Roku to act as an 'app store' for television.

“I think the story really, you know, makes sense once you have all three of those and then just understanding the backdrop of the CTV space this is still a very nent space.” — ▶ 10:00

ARK Invest believes that despite short-term advertising pullbacks, Roku's long-term story remains intact due to the secular shift from linear TV to streaming. They highlight Roku's position as a leading TV operating system, its global reach, and its ability to offer efficient, targeted advertising, similar to how Google and Facebook dominate digital advertising. The company's open-source model provides detailed projections supporting this thesis.

“even with the disappointing earnings around Roku the long-term story is still intact we do firmly believe that the opportunity here is still that Global opportunity” — ▶ 30:00

ARK Invest believes Roku is a prime beneficiary of the shift from linear to Connected TV, positioned to monetize content and ad inventory as viewers and ad dollars move to streaming. They project significant growth in active accounts and daily streaming hours, driven by international expansion and content diversification. The company's ability to capture a large share of the growing digital ad spend, especially as live sports shift to streaming, presents a massive opportunity.

“we believe that Roku as the only purpose-built operating system for TVs is going to be a prime beneficiary of the shift from linear to Connected TV and it's going to be able to monetize both content and AD inventory as more viewers and AD dollars shift from linear which is really considered cable and broadcast into the streaming ecosystem” — ▶ 2:00

ARK believes SpaceX's IPO was successful and its high valuation is justified by its future growth potential, particularly in Starlink satellites and AI orbital data centers. They project $300-400 billion in revenue by 2030, driven by efficient capital injection into these areas. The company's ability to debt finance satellites and its potential for bundling services like Starlink with consumer offerings further enhance its long-term prospects.

“They're going to take lots of cash, invest in satellites, principally Starlink satellites, loft them into orbit and monetize them. And we think that kind of injecting cash into that particular business is the most efficient use of capital for them in the immediate term.” — ▶ 1:00

The speaker believes SpaceX will go public, viewing it as a 'real company' that requires substantial capital for its ambitious projects like space compute infrastructure. Accessing public markets is essential for efficiently raising the large amounts of capital needed for such ventures, not just through equity but also by making debt underwriting easier. SpaceX is seen as a 'gorilla' in the market whose successful IPO could open the window for other companies.

“I think Anthropic is a real company. I think SpaceX is a real company. Obviously, they're both in our venture strategy.” — ▶ 13:40

ARK Invest is bullish on SpaceX following its acquisition of a significant amount of spectrum from EchoStar, positioning it to become a global cellular provider through its Starlink direct-to-device service. This move places SpaceX in direct competition with terrestrial cellular providers and could lead to a 100x improvement in bandwidth, enabling internet browsing and video streaming anywhere in the world.

“And what it really does is it positions SpaceX more directly into competition with the terrestrial cellular providers.” — ▶ 15:00

ARK Invest highlights SpaceX's Starlink V3 satellites, which offer a 10x increase in bandwidth per satellite and a 20x increase per Starship launch compared to previous versions. This technological advancement drastically reduces the cost of satellite bandwidth, making internet connectivity incredibly inexpensive and enabling Starlink to compete directly with terrestrial providers, suggesting strong growth potential for SpaceX.

“this is continuing on likely getting down to the $1,000 per gigabit per second um with the V3 and Starship” — ▶ 20:00

ARK Invest highlights SpaceX's groundbreaking achievements in rocket reusability with Starship, which drastically reduces the cost per kilogram to low earth orbit. This innovation is expected to transform the space economy, enhance Starlink's capabilities by enabling larger satellites with more bandwidth, and is a critical step towards human colonization of Mars.

“This is the future right so it's like Falcon 9 reversed bloating Bure bureaucratically driven uh cost increases in rocket launch then Falcon 9 came in and reset that and you know was able to demonstrate reuse that no one thought was possible” — ▶ 12:50

The speaker believes SpaceX is a strong investment due to its ability to monetize every step of its space exploration efforts, particularly through Starlink. They highlight the significant reduction in cost per kilogram to orbit, which opens up numerous possibilities for new business models in low Earth orbit manufacturing and science, making it a category leader in payload to low Earth orbit.

“Every single thing that's facex builds along the way it can be monetized and opens up new opportunities like right now the kpi is just you know your cost per kilogram uh accelerating into orbit it's dropped a lot thanks to SpaceX like it can drop materially and once you do that you really don't know what is in the realm of possible.” — ▶ 6:00

Cathie Wood believes Tesla will dominate the robotaxi market due to its extensive data from 7-8 million vehicles and a superior cost structure from vertical integration, allowing it to offer rides at a much lower price point (potentially 25 cents per mile). She anticipates a rapid acceleration in adoption as regulators recognize the safety benefits of autonomous driving over human driving, leading to a 'winner-take-most' scenario for Tesla in the mobility-as-a-service sector.

“I think Tesla will win most of the market. Much like the Uber Lift, you know, Uber taking the lion share of the market. I think Tesla will take Whimo will probably be the equivalent of Lyft.” — ▶ 7:00

ARK Invest believes Tesla holds a significant data advantage in autonomous driving due to its large customer fleet collecting video data, enabling continuous software updates for full autonomy. This vertical integration also provides a substantial cost advantage in robo-taxi operations, which is crucial for scaling and profitability in the nascent industry. They project Tesla could satisfy a large portion of ride-hail demand with its current and future vehicle lineup.

“Tesla has this immense data advantage that really no one else has. It's driven both by the fact that they've been doing this for a while, having cars roll out the assembly line with this capability, plus the fact that they have a large consumer customer fleet driving this.” — ▶ Watch clip

ARK Invest highlights Tesla's immense data advantage in autonomous driving due to its large customer fleet and vertically integrated manufacturing. This allows Tesla to scale its robo-taxi service and advance technology more effectively than competitors. They project robo-taxis to generate $34 trillion in enterprise value by 2030, with the majority accruing to autonomous technology providers like Tesla.

“You can see here that Tesla globally really surpasses um any other competitor. Uh this is because they collect uh video off of their customer vehicles. Um all of the cars are equipped with sensor sets that are uh capable of um sensor sets and and an onboard compute uh system that's capable of turning the car into a fully autonomous car through software updates.” — ▶ 1:10:00

The speaker highlights Tesla's progress in deploying robo-taxis without safety drivers, aligning with Elon Musk's predictions. They believe this scalable deployment will lead to Tesla becoming a monumentally large business in the robo-taxi sector, which they estimate will be worth over $30 trillion as it scales.

“ultimately this should lead to Tesla being able to scale Roboaxi in a profound way since they produce so many assets. Um, if you can do this scalably, it'll, you know, uh, become a monumentally large business.” — ▶ 40:00

ARK believes Tesla has a significant competitive edge in the emerging robo-taxi market, with an estimated 50% lower cost structure compared to competitors like Waymo. They project a massive total addressable market for autonomous vehicles, suggesting Tesla will be a dominant platform provider in this ecosystem.

“Tesla's competitive edge over Whimo is uh is has well at least according to our estimates increased. We used to think that their cost structure Tesla's cost structure would be 35% lower than Whimo's. uh but as we have refined our analysis, we now believe it's going to be 50% lower.” — ▶ 18:00

ARK Invest views Tesla's plan to build its own chip fab as a strategic move to secure supply for vehicles and Optimus robots, similar to its vertical integration in batteries. This is interpreted as a way to gain negotiating leverage with existing chip manufacturers and ensure volume for ambitious growth targets, rather than a direct competition with major chip foundries. The discussion also highlights the potential for Tesla's chip design team to support other Elon Musk ventures like XAI and space compute, indicating a broader strategic play.

“Probably the biggest announcement, the biggest change um that we learned about was that Tesla plans on building their own chip fab.” — ▶ 2:00

ARK Invest believes Tesla is a strong buy due to its increasing confidence in robotaxi services and the potential for significant scaling of vehicle production. They highlight the company's advancements in FSD, including the addition of 'reasoning' to the car, which is expected to lead to unsupervised full autonomy and a fleet operator model for robotaxis. The firm also notes that Tesla's ability to generate substantial cash flow from robotaxis will fund further ambitious projects like humanoid robots.

“I do think Tesla is going to have good places to throw capital for return. Um yes and and I think they will aggressively do so which was great for the world to be honest.” — ▶ 40:00

ARK Invest believes Tesla is a strong buy, particularly given the proposed pay package for Elon Musk. They argue that the ambitious targets set in the package, though challenging, are achievable based on their models, especially with the potential for robo-taxis and humanoid robots. They view the package as a win-win for shareholders, Elon, and society, incentivizing continued innovation and growth, and believe the company could prove to be a deep value investment over a five-year horizon.

“This is a winwin for all of us if Elon succeeds this time around the way that he did uh the last time around.” — ▶ 4:00

ARK Invest believes Tesla is a strong buy due to the imminent scaling of its robo-taxi service, which they project will generate hundreds of billions in annual cash flow. They also see significant long-term value in Elon Musk's continued ambition to push the company into the humanoid robot market (Optimus), viewing his 'trillion-dollar' pay package as an option on this larger opportunity. The analysts argue that the market misunderstands the potential size of the robo-taxi market, even in individual cities, and that Tesla's ability to flood markets with vehicles directly from the factory gives it a substantial advantage over competitors like Waymo.

“I think that there are there are technologies that are forever out into the right. Quantum computing, I think, is in that land. Fusion has been in that land, you know, and uh in some ways the the wager we've made against the market is that, you know, robo taxi on vision only sensors on commercially available vehicles is not in that land. It's kind of commercialized. I think there is wildly abundant evidence that that's true that we're going to cross the threshold and it's we're going to cross it you know likely uh like very likely in the next 12 months let's put it that way.” — ▶ 14:00

ARK Invest expresses high confidence in Tesla's autonomous driving future, particularly its robotaxi service. They believe Tesla will achieve significant scale and cost advantages, potentially displacing competitors like Uber, due to its production capacity and ability to accumulate miles quickly. Despite current hiccups, they are bullish on the long-term potential for autonomous vehicles to exceed human safety levels.

“I'm extremely confident that we're going to have a autonomous future in the next 5 years.” — ▶ 3:00

ARK Invest is bullish on Tesla due to its impending robotaxi service launch, which they believe will transform its business model from hardware sales to high-margin recurring software revenue. They highlight Tesla's significant data advantage, lower vehicle production costs, and superior manufacturing scale compared to competitors like Waymo, positioning Tesla to undercut pricing and capture substantial market share in autonomous ride-hailing.

“So, yeah, between data advantage, cost, and production, you can tell that we're super excited for for Tesla to launch its robo taxi service in the coming days.” — ▶ 05:00

The analyst suggests that Tesla's robo-taxi service, if launched as rumored, will be a superior product that could significantly disrupt the ride-sharing market. They believe that a lower price point (e.g., two-thirds the current cost) and the absence of a human driver would lead to a massive increase in demand and utilization, making current ride-sharing services look like a 'joke'.

“Tesla is going to launch the robo taxi rumored June 12th. We'll see if that's accurate or not. ... what'll really drive it is you'll get it for like 2/3 the price, same availability, and no stupid driver behind the wheel. Then it'll totally, you know, it'll make these categories look like a joke, right?” — ▶ 12:40

ARK Invest believes Tesla's Cybercabs will have a significant cost advantage in the Robo-taxi market due to vertical integration and streamlined technology, allowing them to produce vehicles at a much lower cost than competitors like Waymo. This low cost of production is seen as key to success in a 'winner-take-most' market, with Tesla positioned to capture a large share of the projected $8-10 trillion global market for autonomous mobility.

“low cost of production is going to be key to success in this winter take most Market and we do believe it is winter take most as many AI projects are we think this is the AI project out there with the biggest Revenue generating potential in the next five years.” — ▶ 42:00

ARK Invest is bullish on Tesla's potential in the robo-taxi market, anticipating a significant scaling advantage due to its verticalized manufacturing, inherent cost advantage, and non-geofenced rollout strategy. They expect Tesla's proprietary data lake to provide a competitive edge upon the launch of its autonomous ride-hail service in Austin in June.

“Tesla's data Lake and proprietary data Advantage should give it a Competitive Edge when it launches its autonomous rill service in Austin this June so while weo launched back in 2018 for commercial service um Tesla as Daniel mentioned plans to launch this year and we're excited because this could be the year of Robo taxis actually scaling” — ▶ 22:00

ARK Invest is invested in Tesla, viewing it as a key player in the humanoid robot space. They highlight Tesla's internal development of robotics, emphasizing that the company is building its own hardware because existing solutions are insufficient, and that the challenge has largely shifted to software. This positions Tesla well for the future of humanoid robotics.

“Tesla said we're not buying anything off the shelf because it doesn't exist we're making it ourselves and now it's very much become a software problem so it's like that's the excitement and like the why now humanoid robots is software plus Hardware but the capability advancements are going to be software defined and software is moving very quickly” — ▶ 19:00

Cathie Wood believes Tesla will deliver a fully autonomous service this year, potentially starting in June in Austin, and expects it to roll out quickly across the country. This commercialization of full self-driving is a significant catalyst, as only Tesla and Waymo have achieved this among many initial contenders.

“we believe this year Tesla will deliver a fully autonomous Service uh they're saying in June in Austin will'll see the debut and we think that it will roll off out across the country uh pretty quickly thereafter” — ▶ 5:00

The analyst suggests that the market is underappreciating Tesla's AI opportunity, particularly in autonomous driving and humanoid robots. Despite missed earnings expectations, the stock appreciated due to the focus on launching autonomous ride-hailing services, with plans for Austin in June and nationwide expansion next year. Tesla's ability to scale its software development through customer data gives it an advantage over competitors like Waymo, making its expansion more of a logistics challenge than a technological one.

“overall um even though the results missed expectations we saw the stock appreciate and it seems like it's largely um because of of what we've been excited about over the past five to 10 years which is the really we should call it the AI opportunity now but it's kind of all encompassing it's it's autonomous driving it's then moving on to human o robots” — ▶ 10:00

ARK Invest believes Tesla will be highly cash flow generative from its robotaxi service, which will allow it to reinvest in further production of cybercabs. This reinvestment will drive significant economic productivity and growth, making Tesla a strong investment.

“not only should each cyber cab be massively economically productive as it increases economic production but also um we think very cash flow generative to Tesla and so then Tesla is not going to take that money and stick it in its pocket it's going to take that money and reinvest in the production of more cyber caps” — ▶ 8:00

ARK Invest maintains a bullish stance on Tesla, primarily due to the impending launch and scaling of its robotaxi network, powered by FSD v13. They believe this service will be highly profitable, potentially accounting for 90% of the company's enterprise value in the next five years, and that Tesla's vertical integration and data advantage will allow it to scale more effectively than competitors.

“Robo taxi services versus selling the full self-driving software and I mean we think it's going to be much more profitable that's going to be almost 90% of the Enterprise value of the company over the next 5 years according to our published model” — ▶ 15:00

Cathie Wood believes that Tesla, which was previously removed from the 'Mag 7' group due to underperformance, will be reinstated. She implies that the market will recognize its value again, especially as the focus shifts from large-cap safety plays to broader market innovation.

“I think they're gonna want Tesla back in they're gonna want Tesla back in they're gonna include a few more too.” — ▶ 5:00

ARK Invest maintains a positive outlook on Tesla, citing strong earnings driven by aggressive cost reductions, particularly a record low cost per vehicle. They are excited about the progress in autonomy, including the testing of a ride-hail platform and the potential for a human-driven service with a better cost structure than competitors. The long-term market opportunity for autonomous ride-hail is highlighted as a significant growth driver.

“I think likely because people were pleasantly surprised by earnings which beat expectations thanks to um pretty aggressive cost reductions on the vehicle platform they said they achieved a record cost of it's like 35,100 per vehicle.” — ▶ 00:39

ARK Invest believes Tesla is well-positioned to dominate the robotaxi market due to its manufacturing capabilities, extensive data collection from its FSD fleet, and a cost structure that can significantly undercut traditional ride-hailing services. They project a potential cost of 20-40 cents per mile for consumers, which would expand the ride-hailing market dramatically and lead to a shift away from personal car ownership in urban areas.

“ultimately we think that Tesla is the company that um is better set up to really scale this type of effort” — ▶ 6:00

ARK Invest believes Tesla is well-positioned to be a leader in the robotaxi market due to its extensive FSD (Full Self-Driving) data collection, with customers driving over 2 million miles daily in FSD mode. This data provides a significant advantage for training its full autonomy efforts, which is crucial for scaling robotaxi operations. The company's ability to leverage this data and potentially be an early scaler in autonomous ride-hail could lead to substantial earnings and market share in the future.

“Tesla has not launched fully autonomous rides yet, but it's really a question of who will get to scale first and that's where Tesla comes in.” — ▶ 3:00

ARK Invest updated its Tesla price target to 2029, with autonomous driving, specifically a robo-taxi service, projected to drive nearly 90% of Tesla's value. They believe the shift from one-time vehicle sales to a recurring revenue stream with attractive margins, supported by advancements in AI FSD and Tesla's large data advantage, will significantly boost the company's valuation. The model shows a 58% probability of robo-taxi commercialization in 2025.

“we just updated our Tesla price Target we push it out to 2029 and we also published our model as as we do every year... autonomous driving already... now we think that's actually close to 90% so ultimately we think Tesla will launch a robo taxi service...” — ▶ 00:40

The speaker implies that AI acceleration will have a significant financial impact on Tesla, specifically through the delivery of Robo-taxi technology. This suggests a positive outlook for the company's future earnings and market position.

“AI acceleration that then leads to Tesla being able to deliver Robo taxi for example is a much more meaningful Financial impact on the company than some of the you know next Generation internet plays” — ▶ 0:50

ARK Invest maintains a bullish stance on Tesla, reiterating their 2027 price target of $2,000 per share, largely driven by the potential of Robo-taxis. They believe Robo-taxis could account for two-thirds of Tesla's enterprise value due to recurring revenues and significantly higher margins compared to the traditional vehicle business. The recent earnings call and the upcoming August event highlight Tesla's focus on autonomy and the potential for FSD licensing to other automakers.

“the price Target that we published for Tesla uh for 2027 that we're currently updating now $2,000 per share um in that analysis we thought that roughly two-thirds of the Enterprise Value could be attributable to Robo taxis” — ▶ 2:00

ARK Invest believes that traditional automakers focusing on hybrids are making a short-term mistake, which will ultimately benefit pure-play battery electric vehicle companies like Tesla. They argue that battery cost declines have made affordable EVs possible, and the oversupply of batteries could accelerate this trend, allowing pure-play companies to gain market share from both hybrid and gas vehicles.

“I really think these companies that are going to focus on hybrid are going to actually make it better for the Pure Play companies who are willing to push through on their investment for Pure battery electric.” — ▶ 20:00

ARK Invest believes Tesla is undervalued, with autonomous driving (FSD v12) being a major unpriced catalyst that could account for two-thirds of its future enterprise value. They highlight Tesla's cost advantages in EVs, the impending low-cost vehicle, and the safety statistics of FSD as key drivers for future growth, comparing the current market sentiment to 2019 before its significant rally.

“I do feel like Tesla today is very much where it was in 2019 where there were a lot of doubters back then it was production hell no one thought that the model 3 could scale they didn't think that Elon was going to be able to pull it off with that kind of Battery Technology on a large scale and he did and of course the stock went crazy to the upside when when analysts and investors could no longer deny that.” — ▶ 50:00

ARK Invest maintains a long-term bullish stance on Tesla, emphasizing the potential of its Robo-taxi service and the next-generation vehicle platform. They believe the current slowdown in growth is a temporary 'pause between two big waves' and that the market is underestimating the future value derived from autonomous driving and manufacturing innovations. The company's ability to execute and innovate, particularly with FSD V12 and Optimus, positions it for significant future growth.

“if you're a long-term investor I think you believe that this is the pause between two big waves” — ▶ 12:00

ARK Invest believes Tesla's Cybertruck, despite initial mixed reactions on price and range, showcases significant engineering innovations like steer-by-wire and 48-volt architecture. These advancements, coupled with Tesla's vertical integration, position the company for steeper cost declines and higher profitability compared to competitors in the long run, making it a compelling investment.

“because they are all all the way in on this new architecture they should have a steeper cost decline in terms of their their ability to manufacture these um Technologies over time and so we don't know we don't know what the gross profitability on the Cyber Tru is going to be starting out and it'll be really sensitive to the ramp of the program um but there's definitely reason to believe if they stay at this price point all competitors stay at this price point they will be like much more profitable for these vehicles relative to competitors because of the way they're set up and and pursuing these new technologies” — ▶ 10:00

The speaker highlights Tesla as a prime example of a company embodying the convergence of key innovation platforms like energy storage (battery systems), robotics (autonomous vehicles), and AI (full self-driving). They note Tesla's significant lead in autonomous miles logged and its integrated approach to technology, contrasting it with traditional car manufacturers that lack their own chips and software platforms.

“currently with Tesla where we both are invested in we see that we might lose this important industry in Germany very very fast and very soon” — ▶ 5:00

The analyst believes Tesla has a significant data advantage in autonomous driving due to millions of customer cars on the road, compared to hundreds for competitors like Cruise and Waymo. This allows Tesla to statistically prove its safety more effectively and learn from competitors' regulatory challenges, positioning it to be first to scale autonomous technology.

“Tesla has a massive data Advantage because it has millions of customer cars on the road compared to hundreds at Cru in whmo so a lot more data to train the system.” — ▶ 8:00

ARK Invest maintains a positive long-term outlook on Tesla, arguing that while short-term concerns exist due to macro factors and production ramps, these are misplaced. They highlight Tesla's strong balance sheet with significant cash and low debt, positioning it favorably compared to traditional automakers who may face more significant challenges in the current economic environment.

“So many people were concerned with Tesla Tesla is the lowcost provider in vehicles and they're Leading The Way with growth and electric vehicles and if people are concerned about Tesla which I think is misplaced maybe their short-term concern just as they ramp and macro factors here the real Spotlight should be shine shown Shin shown on uh traditional automakers yeah I think I think there's going to be some damage done” — ▶ 12:00

ARK Invest views Tesla's recent price cuts as a strategic move to stimulate demand and increase market penetration, aligning with their belief that the long-term autonomous opportunity outweighs short-term profits from car sales. They argue that EV costs will continue to decline due to Wright's Law, making Tesla vehicles more accessible and competitive, even with higher interest rates.

“I think this is a move by Tesla to stimulate demand... they believe that the autonomous opportunity tomorrow is much greater than the profits they get from just selling a car today.” — ▶ 29:00

ARK Invest believes Tesla's full self-driving vehicles will eventually consolidate into taxi fleets, generating significant profitability for owners. They anticipate a launch on the West Coast first, where there's a high concentration of Tesla vehicles, and expect regulators to tolerate the service given the precedent set by other robo-taxi companies.

“when Tesla commercializes there will be a lot more cars on the road and they'll be able to go to The Regulators with a packet of data being like listen these are kind of like operating in your city here you know maybe hundreds of millions of miles demonstrating kind of like how much safer we are than the human drivers operating in in your city” — ▶ 29:00

ARK Invest maintains a bullish stance on Tesla, emphasizing its leadership in electric vehicles and the significant future value expected from its Full Self-Driving (FSD) technology, which they project to constitute over 60% of the company's enterprise value within five years. They highlight Tesla's immense data advantage in FSD development, collecting over 2 million FSD miles daily, and its commitment to scaling production for future autonomous vehicles. Despite short-term market concerns about margins and production, ARK views Tesla's long-term growth trajectory and technological advancements as highly compelling.

“from our perspective that's great because we think it'll be you know over 60 of the Enterprise value of the company over the next five years” — ▶ 2:00

ARK Invest believes Tesla's significant investment in AI compute capacity, aiming for 100 exaflops by October 2024, will accelerate its lead in full self-driving and potentially other AI applications like Optimus robots. This vertical integration strategy, similar to their battery production, addresses a critical bottleneck and leverages their vast real-world data advantage over competitors like Cruise and Waymo, positioning them for long-term growth in autonomous technology.

“Tesla's saying they're sitting there saying you know if this is the bottleneck we're not going to wait and get price gouged here we're gonna you know verticalize as we've done with a lot of other things and drive forward to the finish line” — ▶ 10:00

ARK Invest highlights Tesla's innovation in designing its own AI chip for autonomous driving, demonstrating a strategic move to control its hardware stack. They also point to Tesla's powerful data feedback loop, where every vehicle's experience contributes to improving the AI model, creating a significant competitive advantage in the autonomous driving sector.

“one analogy I like here with Tesla is a blue stop sign so very few people know this but there are a couple of places in Hawaii that actually have blue stop sites and a human could probably Intuit rolling up to the stop sign that it's a stop sign right even though it's not red it's shaped like a stop sign and it says stop on it but an AI model that's powering a full self-driving vehicle might not know that it might roll up and say well that's not a stop sign it's blue and continue rolling on through but if the human intervenes and presses the brake it basically labels that event as a mistake and the system learns over a couple of instances that blue stop signs are also stop signs and so then if this were a Tesla every Tesla in the fleet would then realize that blue stop signs are also stop signs and that's a data feedback loop that's very powerful and hard to compete with” — ▶ 10:50

Wood highlights Tesla's ability to continuously lower prices due to its position on the electric drivetrain technology cost curve, where costs decline by 28% for every cumulative doubling of units produced. This allows Tesla to maintain higher margins than competitors like Ford and GM, even with price cuts, putting immense pressure on traditional automakers.

“Tesla told us on on its last earnings call that it is going to price so that it can keep its production lines full and it can afford to lower prices because even at these lower prices its margins are much higher than Fords and higher than GMs even after these price cuts.” — ▶ 40:00

ARK Invest suggests Tesla has a significant competitive advantage in autonomous driving due to its large fleet of nearly 3 million cars on the road collecting data. This data acts as an R&D center, feeding into the autonomous neural net training system, which is a much larger data collection effort than competitors.

“while Tesla has not launched it has almost 3 million cars on the road collecting information today acting like little r d centers collecting Corner cases to then feed back to the autonomous neural net training system that helps the car improve that is much larger than that Fleet is much larger than the fleet that we see at competitors” — ▶ 7:00

ARK believes Tesla is in the 'pole position' for autonomous ride-hail services, particularly in the United States. They anticipate electric vehicles will hit price parity with gas-powered cars and then experience accelerated price declines, posing a serious risk to traditional auto manufacturers.

“we believe that Tesla's in the pole position there certainly in the United States but we also highlight once again how Global oil demand is at risk because of electric and autonomous” — ▶ 34:40

Cathie Wood states that ARK Invest has been buying more Tesla during the downturn. She believes that the current market fear, evidenced by high cash on the sidelines and a high put-to-call ratio, presents the best time to average into these markets. She contrasts this with the late 90s tech bubble, arguing that current technologies are ready for prime time.

“You have been buying more Tesla and other stocks during the downturn and and yet the prices have fallen further and our performance decline has worsened with interest rates and prices fluctuating so widely and in in this case they probably mean increasing will an investment focus on Innovation work well we believe that the leading indicator correctly is inflation and it it has peace the inflation rate has peaked.” — ▶ 10:00

The speaker discusses how Tesla was excluded from the S&P 500 for a long time due to its rules, causing investors in index funds to miss out on significant appreciation. They imply that excluding such high-growth, technologically interesting companies can subvert total average returns for index investors.

“The reason Tesla being denied out of the S&P 500 for so long was so terrible for end investors is because they actually missed a lot of the asymmetry.” — ▶ 30:00

ARK Invest maintains a bullish stance on Tesla, projecting a 2026 price target of $4600 per share, with a bull case of $5800. This valuation is driven by expectations of significant growth in electric vehicle sales due to battery cost declines, Tesla's strong capital efficiency in production, and the massive potential of autonomous driving (robo-taxis), which is expected to contribute 60% of the model's expected value. They highlight Tesla's unique position as both a vehicle manufacturer and a potential autonomous platform provider.

“our expected value for Tesla stock price in 2026 is 4600 per share” — ▶ 10:50

Cathie Wood notes that Tesla has held up better than other innovation stocks in their portfolio, attributing this to its inclusion in the S&P 500 and other indices. While not explicitly a 'buy' call, it's presented as a resilient holding within their innovation-focused strategy.

“As you'll notice Tesla has held up much better than other of our innovation stocks it's because it was put into the s p 500 and other indices in recent years” — ▶ 20:00

Wood believes Tesla, through its electric vehicles and future robo-taxis, will accelerate the shift away from oil, especially as high oil prices destroy demand. This positions Tesla as a solution to energy dependence and a beneficiary of innovation solving problems.

“Tesla is providing free supercharging uh in Poland... and of course we know that longer term electric vehicles are going to help with the demand destruction of oil I think the prices alone will destroy a lot of demand for oil and accelerate the shift to electric vehicles” — ▶ 31:20

Cathie Wood believes that traditional automakers will struggle to catch up to Tesla's innovation in electric vehicles, particularly regarding battery technology (cylindrical vs. prismatic). She anticipates that traditional automakers will be stuck with inferior products and inventory, leading to 'creative destruction' that benefits leaders like Tesla.

“the more we learn about the the strategy that traditional automakers have adopted from a battery point of view the more we believe that their that they're not going to be able to catch up to the likes of a Tesla which is really driving this innovation.” — ▶ 27:00

The speaker suggests that Bitcoin will likely continue to rise relative to gold, as gold is expected to decline. They note that some on-chain indicators suggest extreme bearishness, which could signal a turning point for Bitcoin.

“And as far as Bitcoin, there are a few onchain indicators that are saying the bearishness has reached an extreme. We shall see. We shall see. Maybe this is going to be a test.” — ▶ 30:00

ARK Invest believes Bitcoin will continue to increase relative to gold, suggesting a sustained upward trend. They anticipate gold may fall, especially if the dollar strengthens, further supporting Bitcoin's relative performance.

“Watching Bitcoin to gold. Bitcoin is moving up relative to gold. This would suggest that we've held the sort of the higher lows. The trend is up. Shall I say the trend is up over time and we do believe it is up over time.” — ▶ 30:00

ARK Invest views Bitcoin as a maturing institutional asset, citing increased adoption by ETFs, digital asset treasuries, and state reserves. They project a significant increase in its market cap by 2030, driven by its role as 'digital gold' and decreasing volatility, despite some shift in emerging markets towards stablecoins. Bitcoin is seen as a reliable asset with healthy risk-adjusted returns.

“our main focus for 2026, as it regards to Bitcoin, was just seeing it mature as an institutional asset across not only the ETF cohort, but also digital asset treasuries and just as um an ever constant and ever important part of portfolio for most investors going forward.” — ▶ 00:19

ARK Invest believes Bitcoin is maturing as an institutional asset, with increasing adoption by ETFs and digital asset treasuries. Its risk-adjusted returns have been strong, and volatility is diminishing, making it a reliable component for investor portfolios. They project its market cap to reach $16 trillion by 2030, primarily driven by its 'digital gold' value accrual.

“So our main focus for 2026 uh as it regards to Bitcoin was just seeing it mature as an institutional asset um across not only the ETF cohort but also uh digital asset treasuries and just as um an ever constant and ever important part of uh portfolio uh for most investors going forward.” — ▶ 40:00

Cathie Wood believes that despite recent algorithmic selling and the involvement of ETFs leading to 'weaker holders,' Bitcoin's fundamental uptrend remains intact. She argues that its fixed supply growth contrasts with gold's accelerating supply, making it a superior store of value, especially during periods of market volatility. ARK Invest has been accumulating in the crypto space during these downturns.

“We use these periods. we've been buying uh in in the crypto space in our various strategies.” — ▶ 30:00

Wood suggests 'nibbling' at crypto-exposed stocks and leaning into Bitcoin, especially given recent negative sentiment and its significant price drop. She views Bitcoin as a 'three revolutions in one' asset: a global monetary system, a new technology, and a new asset class with low correlation to traditional assets, making it attractive for institutional diversification.

“There was so much negative sentiment that I felt okay, you know, we need to leg in and lean into this if our research is correct, that this Bitcoin is three revolutions in one.” — ▶ 14:00

ARK Invest maintains a strong bullish stance on Bitcoin, viewing it as 'digital gold' and an 'unstoppable asset' that provides sovereignty and protection against inflation and currency devaluation. They believe it has significant room for price appreciation, especially as investors cycle back from gold, and that it will eventually surpass 1 kilogram of gold per Bitcoin within the next 12-18 months. The asset's inconfiscable nature and lack of counterparty risk make it a crucial component in a diversified portfolio, particularly in an environment of geopolitical instability and monetary transition.

“I'd be selling [gold]. I'd be buying Bitcoin big time.” — ▶ 40:00

The speaker believes that institutions are buying Bitcoin during the current sell-off, preventing a much steeper correction. They suggest that Bitcoin is moving from 'weak hands to strong hands' and that a drop to $10,000 is very unlikely, with $74,000 potentially acting as a strong support level due to MicroStrategy's average cost.

“I agree in general with the premise that uh institutions are buying as we go down. Um and that that will uh you're you're not going to see the same thing of kind of like Bitcoin going to $10,000. That seems very unlikely to me.” — ▶ 50:00

ARK believes Bitcoin's role as 'digital gold' has significant growth potential, acting as both a risk-on and risk-off asset, hedging against inflation. They highlight its mathematically metered supply cap of 21 million units, which differentiates it from gold, and expect it to be a crucial store of value during the intergenerational wealth transfer.

“Bitcoin's role as digital go gold has miles to go. ... we do think it will be a very important store of value going forward particularly as we go through the intergenerational wealth wealth transfer that we expect during the next um during the next 5 10 15 years.” — ▶ 9:40

ARK Invest maintains a strong long-term bullish stance on Bitcoin, viewing it as a protocol that is driving exponential growth and productivity globally. They highlight its anti-fragile nature, its role as both a risk-on and risk-off asset, and its increasing adoption as a medium of exchange and pristine collateral, especially in emerging markets and for institutional financing. The team believes that the current phase of development, including regulatory clarity and new use cases, sets up Bitcoin for significant growth in 2026 and beyond, despite short-term price volatility.

“I think 26 looks super bright. Yeah, as we say, truth wins out. And I know a lot of people are discouraged right now, especially with the DATs. Especially with the DATs. Uh, you know, and I actually think, and we were talking a little bit before we got on, that as a portfolio manager, I much prefer that we're in a period of doubt and then picking through picking up the pieces is what we all should be doing right now if we really believe what we're saying.” — ▶ 12:00

Tom Lee expresses bullish sentiment on Bitcoin, agreeing with ARK's targets for its fair value. He sees Bitcoin as digital gold and a global monetary system, believing its value could reach $1.5 to $2.1 million, providing upside for the broader crypto ecosystem.

“So I'm very bullish on Bitcoin and I I believe your uh targets for Bitcoin are actually reachable. So I, you know, we think Bitcoin fair value should at least be 1.5 to 2.1 million, but we can see higher values...” — ▶ 24:40

Cathie Wood believes that Bitcoin's recent drop was primarily due to short-term liquidity constraints, which she expects to be temporary. She anticipates that the Bitcoin to gold ratio will resume its uptrend, suggesting a strong long-term outlook for Bitcoin as liquidity returns to the system.

“If we are right we believe that that that the Bitcoin to gold ratio will resume its uptrend especially if what I said when talking about the gold to M2 chart is correct.” — ▶ 32:40

The speaker expresses concern that MicroStrategy's strategy, which relies on continuous Bitcoin price appreciation and preferred shares with high dividend payouts, is unsustainable. They believe this leverage point could mark the end of the current crypto bull market, as the company is forced to raise capital by diluting shares rather than selling Bitcoin, and the market may hold them 'underwater' until they release their Bitcoin holdings.

“I do think that a digital asset treasury company, probably Micro Strategy being forced to delever is going to mark the end of this crypto bull market.” — ▶ 30:00

The speaker suggests that the recent Bitcoin sell-off is a natural profit-taking event by 'core crypto nerds' who anticipated a four-year cycle and leveraged positions. They believe the market is in a longer cycle than expected, and once institutional gatekeepers for Bitcoin ETFs make it more accessible, a larger pool of money will enter, supporting future growth.

“I think it's natural for well more structural. You know, crypto is in some ways like a a system of beliefs and so you can have people waver in and out of beliefs.” — ▶ 20:00

Cathie Wood reiterates ARK Invest's bullish stance on Bitcoin, maintaining their $1.5 million bull price target. She clarifies that while stablecoins have taken some of Bitcoin's 'insurance policy' role, the doubling of gold's market cap means Bitcoin's potential to capture a share of that market remains significant, offsetting the impact of stablecoins. She also notes that crypto assets are susceptible to liquidity drawdowns but expects current liquidity issues to clear by year-end.

“I don't think our bull price should change all that much. And I probably should have been quicker to say all things equal on CNBC the other day. So, I just wanted to clarify that. Um we are very bullish on crypto assets.” — ▶ 40:00

Cathie Wood expresses long-term bullishness on Bitcoin, viewing it as a play against the debasement of fiat currencies. She believes both Bitcoin and gold will ultimately help rein in unhinged monetary policies, despite gold's recent outperformance.

“We're very bullish on Bitcoin as you know, uh, longer term. Uh, but gold is very recently has has given it a bit of competition. We we think they are both plays if that's what uh, investors or speculators are betting on here on the debasement of fiat currencies.” — ▶ 40:00

The speaker expresses strong conviction that Bitcoin, as a proof-of-work blockchain, will sustainably work in the world, contrasting it with the perceived instability of proof-of-stake mechanisms. This suggests a belief in its long-term viability and fundamental strength.

“I'm heavily convinced that there will be one proof-of-work blockchain that, you know, sustainably works in the world. That's Bitcoin.” — ▶ 15:00

The speaker views Bitcoin as a 'new global monetary system' and a store of value, contrasting its fixed quantity and governance by mathematics with the inflationary nature of fiat currencies. They suggest it represents the private market's decision to move away from government monies, and that stablecoins like USDT serve as an on-ramp to the broader DeFi ecosystem built on Bitcoin's underlying technology.

“He was already excited about Bitcoin, which is, you know, obviously the the the new global monetary system, but stable coins being an on-ramp into DeFi, decentralized financial services and private monies essentially, it got him going again.” — ▶ 04:40

Cathie Wood notes that Bitcoin has maintained its uptrend relative to gold and acted as a risk-off asset during market tremors, including geopolitical events. She highlights that ARK's on-chain analytics suggest Bitcoin is still in a bull market, indicating continued positive momentum.

“Bitcoin has maintained its uptrend relative to gold did not break. And I think that's a very very positive thing.” — ▶ 40:00

ARK Invest forecasts a significant price increase for Bitcoin by 2030, driven by its growing adoption across six total addressable markets, including digital gold, institutional investment, and emerging market safe haven. They project a substantial penetration rate within these markets, leading to a higher valuation per Bitcoin as supply remains limited. The analysis also considers a 'liveliness' adjustment, reducing the effective circulating supply by accounting for dormant or lost coins, which further increases the price forecast.

“Basically what we did is trying to assess the most pertinent total addressable markets for the Bitcoin use case which are six... and that gives us when you add all that up, we get a final price forecast for for Bitcoin.” — ▶ 00:38

Cathie Wood believes Bitcoin's long-term uptrend remains intact despite recent corrections. She views it as a risk-on asset that will continue to perform well as the market moves into a risk-on environment, especially given its significant outperformance against gold last year.

“But we believe that it was just uh correcting to this trend line uh because bit the Bitcoin price went up so much more than the gold price last year. Uh so we think uh that this uh trend line will continue to move up if we're right that we're moving back into a riskon environment.” — ▶ 36:00

ARK Invest believes Bitcoin could reach $1 million per coin by 2030, driven by its role as a premier cryptocurrency and a stable unit of account. They project a potential attributed value of $20 trillion, comparing it to global M2 money supply, and see it as the likely winner in the cryptocurrency space due to its significant head start.

“And we think Bitcoin could go to a million dollars a coin by 2030. that's at the higher end of our for or that's you know the midpoint between the middle of our forecast and the high end.” — ▶ 4:40

Multiple speakers, including Kathy Wood and Matt Cole, advocate for accumulating Bitcoin as a hedge against dollar instability, a scarce asset in a world of abundance, and a strategic reserve for companies and even nation-states. They argue that its purchasing power increase makes it a superior 'hurdle rate' for capital allocation compared to traditional investments, especially given the current economic uncertainties and the potential for rapid technological disruption.

“I honestly think this is like the craziest time to be in Bitcoin right now and honestly we're going to be covering one of the most important topics potentially for long-term adoption is how private and public companies are kind of acquiring and using this reserve asset that's Bitcoin.” — ▶ 3:00

ARK Invest maintains a bullish price target for Bitcoin, citing its triple role as a monetary system, a technology (blockchain), and a new asset class. The probability of their bull case has increased, particularly due to the anticipated institutional uptake and the potential for developed nations, including the US, to add Bitcoin to their treasury reserves, which would drive significant demand.

“Bitcoin three Revolutions in one it's a monetary system Bitcoin blockchain is a technology and it is a new it is the first it was the first we wrote our paper on this in 20166 the first of its kind in a new asset class and it's a very big idea.” — ▶ 59:00

ARK Invest maintains a bullish long-term outlook on Bitcoin, projecting price targets ranging from $300,000 (bear case) to $1.5 million (bull case) by 2030. This is driven by increasing institutional investment, its role as 'digital gold,' and its potential as an Emerging Market Safe Haven. They also anticipate significant value accrual from nation-state treasuries, corporate treasuries, and the growth of Bitcoin on-chain financial services.

“our updated version of for our 2030 price targets end of 2030 to be specific uh we last published this in 2023 so after two years we decided it would be a good idea just to to update the model a little bit more in this uh 2025 model our bitcoin price targets are showing a bare case a base case and a bull case so in in the bare case for 2030 we have a price target of 300,000 per Bitcoin which implies a kager of 21% uh as the B base case um we have a price target of 710,000 which implies a kager or of about 40 % uh and finally uh the price target for the bull case um implies a 1.5 million or so uh bitcoin price Target uh this implies a kager of about uh 58 59%” — ▶ 10:00

The speaker expresses extreme bullishness on Bitcoin, citing the increasing involvement of highly skilled professionals like Jose from Intel, who are contributing to the Bitcoin ecosystem. They believe the ongoing open-source movement in Bitcoin mining will lead to a 'Cambrian explosion' of innovation, creating new applications and industries that will further decentralize and strengthen the network, ensuring its long-term safety and value.

“I'm so insanely bullish on bitcoin um the monetary Network as well as a Bitcoin uh the reserve asset” — ▶ 1:00:00

ARK Invest maintains a bullish stance on Bitcoin, with a bull case price target of $1.5 million, believing the odds of reaching this target have increased due to the growing institutionalization of the asset class. Institutional investors are increasingly adding Bitcoin to their portfolios because of its unique return and risk profile compared to traditional assets.

“many people know us for our bull case $1.5 million and we actually think the odds have gone up that our bull case will be the right number uh because of what is becoming the institutionalization of this new asset class” — ▶ 10:40

Cathie Wood expects the Bitcoin to Gold ratio to continue moving up, indicating a strong belief in Bitcoin's long-term outperformance. This is based on its historical trend and the ongoing innovation in the crypto space.

“you will not be surprised to know that we expect the Bitcoin to go gold ratio to continue moving up as as it has really in a trend sense since it began” — ▶ 30:00

ARK Invest believes Bitcoin has significant upside, with a bold case price target of $1.5 million. They argue that the new administration's potential sponsorship and Bitcoin's role as a technology and new asset class, rather than just a store of value like gold, will drive its growth. They anticipate a disinflationary environment where gold's price is unlikely to surge, further highlighting Bitcoin's relative appeal.

“we believe that the Bitcoin price is has miles to go for all kinds of reasons that we will delineate in our big Ideas uh report Our Big Ideas report will be out in a few weeks and in that report you'll see uh uh how we get to our Bitcoin uh Price Forecast uh we are in print the Bold case being 1.5 million” — ▶ 40:00

The speaker expresses strong confidence in Bitcoin, stating there are 'zero worries' about its long-term viability, even in the face of potential quantum hacking concerns. They suggest that if quantum hacking becomes a threat, the entire financial industry and nuclear codes would be at greater risk, implying Bitcoin's relative security and foundational importance in a future where fiat currencies might be less stable.

“first of all I have zero worries about Bitcoin period. Let me just be clear about that anytime in the near in the near term if you're concerned about uh about Quantum hacking Bitcoin you should be much more concerned about Quantum hacking the entire financial industry” — ▶ 52:00

The discussion centers on Bitcoin's resilience against quantum computing threats. Experts believe that while quantum computing could theoretically pose a risk to Bitcoin's cryptography and proof-of-work, current quantum technology is decades away from being cryptographically relevant. The Bitcoin community is already exploring solutions like post-quantum signature schemes and taproot branches to future-proof the network, with a long-term upgrade path envisioned.

“I think it's time to start doing something about some of this stuff people have obviously been thinking about it for a while it was something that was kind of planned all the way back when tap rooot was designed.” — ▶ 40:00

Jack Dorsey argues that Bitcoin's open-source nature makes it a critical innovation, allowing capital to flow freely to deserving ideas. He emphasizes its permissionless development model as essential for building permissionless technologies, highlighting its potential to disrupt centralized power structures in finance.

“Bitcoin is the most critical innovation in that it allows Capital to flow most freely to any idea that deserves being capitalized.” — ▶ 19:00

Cathie Wood reiterates ARK Invest's long-standing bullish stance on Bitcoin, viewing it as a potential new reserve currency, a substitute for gold, and a new asset class with low correlations. She also emphasizes its role as an insurance policy against currency collapses and wealth confiscation in emerging markets and for high-net-worth individuals.

“it's a substitute for gold a store of value gold is a$1 155 trillion asset it is a new asset class or as we named our paper in 2016 the one we did in collaboration with coinbase uh ringing the bell for a new asset class how big could that be uh if this new asset class with low correlations of returns and risk relative to other asset classes all fiduciaries have to look at this new asset class and uh and so we think it could become you know two to five or six% of portfolios” — ▶ 44:00

Cathie Wood is bullish on Bitcoin and the broader crypto space, citing increasing bipartisan political support and anticipated crypto-friendly legislation. She believes regulatory clarity will legitimize crypto for a wider audience and that the US aims to lead in the 'money revolution' driven by Bitcoin.

“Bitcoin has been outperforming most of the longer tail assets within crypto as as we were moving towards the election it was becoming so clear that crypto is a bipartisan issue especially young people.” — ▶ 8:00

Cathie Wood believes the new administration's positive stance on Bitcoin, including plans for a strategic reserve, will significantly boost its adoption. She views Bitcoin as a crucial layer of the internet that was missing and expects deregulation to accelerate its growth, bringing innovation back to the US.

“on the digital asset front, I mentioned that Bitcoin is very much a part of this administration's plans including building a strategic Reserve. We're very excited about that.” — ▶ 10:00

Kathy Wood and other panelists express strong bullish sentiment for Bitcoin, citing its potential as a mainstream asset class, a hedge against inflation, and a superior savings technology. They believe that increasing institutional adoption, potential deregulation under a new administration, and its inherent deflationary nature will drive significant future growth, despite current low retail interest.

“I think all roads are sort of pointing towards Bitcoin no matter which direction we go here and that's bullish.” — ▶ 40:00

ARK Invest views Bitcoin as a 'private money' that offers a hedge against geopolitical risks and potential monetary policy indiscipline. They believe its rules-based nature and ability to disintermediate fiat currencies will drive its value, especially given its recent performance and the broader trend of private money competing with monetary authorities.

“If you look at Bitcoin it has doubled over the last year so gold up 40% and bitcoin's price up 100% to $70,000 for for some of the same reasons. I think the wonderful thing about private money which Bitcoin is a rules-based private money is that it is going to give Fiat currencies a run for their money.” — ▶ 40:00

Cathie Wood and Art Laffer express high conviction in Bitcoin as a future global monetary standard, citing its fixed supply and potential to replace unsound paper currencies. They believe its volatility will decrease over time, making it a stable store of value and a risk-off asset during financial crises, similar to gold. They project a price target of $1.5 million by 2030.

“I think to our bull case is 1.5 million dollar let's go uh as as we move toward the system that you are talking about uh art art and and already we are seeing the volatility is coming down.” — ▶ 30:00

Cathie Wood views Bitcoin as a 'private money' that offers healthy competition to fiat currencies, acting as a hedge against government and central bank policies. She notes its resilience, holding strong in the $60,000-$70,000 range despite market turbulence, behaving like a risk-off asset similar to gold. She believes the asset is still in the early stages of its story.

“it is holding like a rock in this 60 to 70,000 range typically it's a very volatile asset and you know it feels like correlations are going to one and maybe they will maybe it will get hit uh before all is said and gun done but it is behaving like gold like a riskof asset” — ▶ 50:00

Cathie Wood emphasizes Bitcoin's role as a 'risk-off' asset, citing its lack of counterparty risk during the Regional Bank crisis and its open-source nature as a hedge against centralized system failures like the CrowdStrike outage. She believes it represents the 'reserve currency of the internet' and a profound movement towards freedom and a new asset class, urging investors to study it to avoid disruption.

“Bitcoin has an attribute here that the banking system doesn't have, there's no counterparty risk here. Today with CrowdStrike going down and taking out wide swaths of the global economy, you know, the open-source nature of Bitcoin and no automated updates and just a huge neighborhood watch ecosystem, everybody watching their livelihoods, you know, I I uh and and watching the ecosystem for for the the the good of humanity Matt as you say freedom so very very interesting each one of these crises is highlighting the benefits of you know Bitcoin.” — ▶ 10:00

Cathie Wood expresses strong conviction in Bitcoin, viewing it as a solution to many global problems and a transformative force for people's lives. She highlights its role as the first global, digital, decentralized, rules-based monetary system, a technology, and a new asset class. She believes its adoption by emerging markets as a hedge against currency depreciation and its increasing institutional involvement will drive its price to $1.5 million by 2030.

“I think what Bitcoin when when uh we did our first paper on Bitcoin in 2015... have caused me to love Bitcoin this is an answer to a lot of the world's problems.” — ▶ 6:00

ARK Invest and its guests are highly bullish on Bitcoin, especially after the halving event, viewing it as a rules-based monetary system akin to digital gold. They emphasize its decentralized nature, the unchangeable monetary policy coded into its five lines of code, and its increasing security through hash rate growth. The halving is seen as a mechanism that strengthens the network by eliminating weaker miners and driving innovation, making Bitcoin a robust asset for the long term.

“I haven't met anyone who's actually done their research that doesn't become a Believer and in Bitcoin and it's only a matter of time.” — ▶ 50:00

ARK Invest maintains high conviction in Bitcoin, viewing it as a unique risk-off asset due to its predictable monetary policy, transparency, and auditability, especially in contrast to unstable fiat currencies. They believe the bull market is not over, supported by on-chain data indicating healthy resets and long-term holding behavior.

“regarding bitcoin's predictable monetary policy it really is one of the primary reasons why we have such high conviction in Bitcoin and why we have had it over the years” — ▶ 03:40

ARK Invest views Bitcoin as a new asset class with low correlation to traditional assets, offering an insurance policy against the loss of purchasing power and wealth, especially in the context of global currency devaluations. They highlight its unique property rights system based on cryptography, which provides financial freedom and immutability, making it a crucial asset for individuals and institutions alike.

“I actually think that that Bitcoin is playing a role because prices are determined at the margin and there is you know the people are voting here for an insurance policy against you know the the the against the loss severe loss of purchasing power and wealth.” — ▶ 12:00

ARK Invest believes Bitcoin merits an independent allocation in traditional portfolios due to its unique characteristics, low correlation with other asset classes, and historical outperformance over longer time horizons. They emphasize a long-term buy-and-hold strategy, noting that investors holding for at least five years have historically profited regardless of purchase timing. The asset is also evolving into a reliable risk-off asset, offering diversification benefits and acting as a hedge against counterparty risk, as demonstrated during the 2023 regional banking collapse.

“to successfully invest in Bitcoin we believe that you should be focused on uh you know the time that you are willing to hold Bitcoin versus the timing or or when you're actually allocating into Bitcoin” — ▶ 4:00

Peter Diamandis is a strong proponent of Bitcoin, viewing it as the financial layer of the internet and an 'equalizing abundance enabling force' for humanity. He believes it aligns with the '6Ds of exponential' (digitization, deception, disruption, dematerialization, demonetization, and democratization) for the financial industry. Cathie Wood also highlights its revolutionary nature as a new asset class and a monetary and financial services revolution, noting that institutions are now buying in and governments are starting to engage, making its growth irreversible.

“I'm a huge Bitcoin proponent... it's really the financial layer on the internet it is it is a equalizing abundance enabling force uh on Humanity.” — ▶ 40:00

Cathie Wood notes Bitcoin's recent surge to new highs, attributing it partly to ETF launches and increased publicity. She also suggests it may be acting as a flight-to-safety asset amidst banking sector concerns, highlighting its lack of counterparty risk. ARK Invest's research indicates significant long-term growth potential for Bitcoin.

“and as you know from our research we think this journey has has miles to go” — ▶ 30:00

ARK Invest strongly defends Bitcoin against criticisms from the ECB, asserting its value as a censorship-resistant network essential for developing nations. They debunk claims of widespread illicit use by citing low percentages from Chainalysis and highlight its disinflationary monetary policy as a key underappreciated value proposition, positioning it as a superior alternative to inflationary fiat currencies over the long term.

“I still think it's underappreciated which is the the monetary policy of it, uh it's deflationary this inflationary quality and the way it keeps restricting Supply from the from the system.” — ▶ 22:40

The speaker argues that Bitcoin is a public good and a new asset class, representing a global digital financial highway. The recent approval of Bitcoin ETFs provides easy and convenient access for a broader range of investors, including financial advisors and older individuals, which will drive further adoption and normalization. Bitcoin has also demonstrated its value as a risk-off asset during times of traditional financial instability, such as the regional bank crisis.

“we do believe this is a public good and that Bitcoin is uh represents the the the global digital Financial Highway out there it is a public good it's a superhighway uh and it also uh represents a new asset class.” — ▶ 7:00

The speaker highlights that Bitcoin is the best-performing asset globally over the past 11 out of 15 years. Incorporating a small allocation (e.g., 2%) of Bitcoin or a Bitcoin ETF into a traditional 60/40 portfolio can increase the Sharpe ratio, improving returns without substantially increasing volatility or risk due to its non-correlated nature. This makes it an ideal tool for portfolio diversification.

“Bitcoin is the best performing asset in the world and it has been the past 11 out of 15 years... If you take a traditional 6040 uh portfolio and you take 2% of that and you you put it in Bitcoin or a Bitcoin ETF the sharp ratio increases.” — ▶ 44:00

Cathie Wood argues that Bitcoin is reasserting itself as a flight-to-quality asset, similar to digital gold, especially during periods of regional bank instability. She notes that 15 million of the 19.5 million outstanding Bitcoin are in 'strong hands' and that the introduction of ETFs makes it easier for institutional participation, which is expected to drive its price higher.

“this idea that it's a flight to Quality or a flight to safety is reasserting itself here the reason we believe Bitcoin went down after the ETF after the ETFs were introduced is because there was a lot of anticipatory buying before before Bitcoin or the ETFs came out there was a bit of the sell on the news these these are the trading types who just are are very opportunistic in that way” — ▶ 40:00

ARK Invest argues that Bitcoin's energy consumption is an essential design feature, akin to gold mining, which creates scarcity and value. They highlight that Bitcoin's energy mix is increasingly renewable and that its energy usage should be weighed against its utility as a decentralized, global financial network. They also debunk the myth that Bitcoin is 'backed by nothing,' pointing to the massive computational network (hash rate) securing it.

“Bitcoin's energy consumption you can almost think of it as trying to replicate the idea of mining gold for example... it is an essential feature to unlock not just the scarcity but the Automation and the decentralization that Bitcoin offers.” — ▶ 14:00

ARK Invest maintains its highest conviction in Bitcoin, viewing it as both a risk-on and risk-off asset. They highlight its decentralization and transparency as a hedge against counterparty risk, especially in light of recent banking crises. The upcoming halving event in April 2024 is expected to reduce supply growth below that of gold, historically preceding bull markets. Additionally, 76% of Bitcoin's circulating supply is held by long-term holders, indicating strong hands ahead of potential institutional demand from ETF approvals.

“our conviction has never been higher that that narrative Evolution I think should not um you know go unnoticed here if we think about the last 10 years where Bitcoin goes from you know this this weird magic internet money to you know this weird asset that's for drug lords and criminals and terrorists to a speculative asset for you know hobbyist to now a very strategic addition to a diversified Investment Portfolio” — ▶ 6:00

ARK Invest and its guests are highly bullish on Bitcoin for 2024 and beyond, citing the impending spot Bitcoin ETF approval as a critical 'green light' for institutional adoption. They emphasize Bitcoin's role as a new asset class with low correlation and high risk-adjusted returns, especially when considering a 2% portfolio allocation over a four-year holding period. The halving event in April 2024 is also highlighted as a significant market driver, reinforcing Bitcoin's scarcity and decentralized nature. The increasing usability and infrastructure development, particularly with the Lightning Network and self-custody solutions, are expected to drive further global adoption and transactional volume.

“I think that's why everyone's been so excited they struck a a partnership with coinbase that was the first big aha moment because of course for a a time there uh the leadership at Black Rock was not so favorably disposed to to bitcoin so that was very big just that and I think that happened yesen was that nine months ago something like that might have been longer uh more than a year ago perhaps uh so that got the brain cells going in the institutional world and um another thing did as well and it was before Black Rock Cambridge Associates which um is a consultant primarily two institutions I think endowments foundations and uh and Pension funds in 2018 wrote a paper and said okay asset allocators you may not bee predisposed to liking this thing called Bitcoin uh but you better uh study it and develop a a stronger point of view because it does appear to be a new asset class so since two that's five years now we've uh we've had that kind of thought roaming around and the excuse was oh the SEC hasn't hasn't blessed it now they'll have no excuse and uh you you know if if you just talk about 1% of trillions and trillions of dollars or 1% allocation well you know the scarcity value of Bitcoin will shine through uh next year if uh institutions do indeed decide they must gain access to this new asset class” — ▶ 10:00

Cathie Wood believes Bitcoin is a strong buy, especially with the anticipated SEC approval of a spot Bitcoin ETF. She highlights its dual nature as both a risk-on and risk-off asset, citing its transparency and decentralization compared to traditional banking, which was proven during the March banking crisis. The asset has also been the best-performing asset this year.

“as we get ready for hopefully the SEC's approval of a Bitcoin a spot Bitcoin ETF we think it is going to happen there are all kinds of signals that it's going to happen” — ▶ 40:00

ARK Invest embraces Bitcoin due to its open-source nature, which fosters transparency, collaboration, and resilience, similar to the Linux Foundation's success. They believe its decentralized structure prevents issues seen in closed ecosystems like OpenAI, making it a natural fit for their disruptive innovation philosophy and a robust monetary system.

“Bitcoin was very natural therefore for for me and us as we were looking at this new technology this new monetary system uh it was it was a natural it was a beautiful thing and we embraced it very early G gave our clients uh their first exposure to Bitcoin in 2015.” — ▶ 19:00

Ellie highlights that Bitcoin is evolving beyond a simple payment network or store of value, becoming a 'Tech play' with smart contracts and token standards like BRC20 emerging on its blockchain. This indicates a significant expansion of its utility and potential, suggesting it's no longer a 'boring' asset.

“now we're seeing it can bring an explosion of like smart contracts built on bitcoin we're seeing Bitcoin becoming more of a of a Tech play” — ▶ 40:00

Cathie Wood highlights Bitcoin's performance during the Regional Bank crisis in March, where it acted as a 'flight to safety' asset, moving from $19,000 to $30,000. She argues that more investors, including institutions, are recognizing its role as a decentralized, transparent monetary system with no counterparty risk, making it both a 'risk-on' and 'risk-off' vehicle.

“I think what happened this year is quite significant it happened that the Bitcoin moved up during a riskof a very important riskof moment the Regional Bank crisis in March it went from 19,000 uh this this is a long-term chart so I'm what I'm telling you is an in inter intraday it it hit a low during that Regional Bank crisis uh at 19,000 and shot up to 30,000 uh why was that flight to Quality as Larry thinkink would say flight to Quality as we would say uh flight to safety as we would say because there is no counterparty risk here uh in this decentralized transparent uh monetary system unlike what happened to the Fiat monetary system in 0809 and I think more people are beginning to understand that this is not just a risk on asset when the markets are feeling really good Bitcoin tends to do very well but can you believe it's also a riskof vehicle and more and more investors including institutions are beginning to understand this so this is innovation at its best and um it is one of the five major Innovation platforms around which we have centered our research so robotics energy storage artificial intelligence um blockchain technology and finally multiomics uh multiomic sequencing and this is the Innovation platform we want to focus on a little bit today the Miracles coming out of this um this source of innovation a year ago just at about this time a young young girl named Alyssa in the UK was cured after being on her deathbed hospice Hail Mary pass in May of that year by November she was cured and we think she still is cured we'd have heard if she weren't let's put it that way um and this was of a rare form of leukemia and the Cure was Gene editing Bas editing uh and what happened last year we in the Innovation world were all over it we were so excited and I called Ali irman who is our lead Therapeutics analyst and said to her she was at the hematology conference where there was apparently I think they call it a poster and um I I asked her I called her at the the conference and I said Ally is everybody all over this and she said no no one sto talking about it I said are you kidding me and the investment world didn't focus on it and if you remember last year at this time we were in a horrendous bare market for Innovation the B the market may have bottomed in October but innovation did not bottom until December uh the world was black nobody could see any hope and today we're seeing something very different and I want to hand off the presentation to Ally uh to give you the good news and uh furthermore uh to um emphasize why the market is so excited this year Ally yeah thanks so much Kathy for that um introduction and insights I I remember the time last year it was around January I think I was at the ash conference uh so the American Association of hematology and they did have as Kathy mentioned a poster there about Alyssa um but it was shocking to me that in conversations you know I would go up and I would say this is so exciting right and you know I feel like analysts were were focused on a few other things but as Kathy mentioned it was a bare market and I think analysts had bare expectations and people were I think a little bit deflated devoid of hope I am seeing such a change um in enthusiasm in thoughts about the market right now you know I feel like uh Kathy and I also were talking about the fact that you know last year at JP Morgan Healthcare conference we were saying okay what are the updates what data are we getting and it felt very incremental felt like a lot of the data we had seen before there weren't a ton of you know m&a deals at the conference we hope and we think that this year will be more robust uh with both deals and data um but even deals that we're seeing this week we saw the astroica selectus deal we saw the Eli Lily deal uh with beam which obviously impacts Verve and and we think these are really sort of um bringing the market more excitement and when there's good news and good data and the stocks react that way uh we think it's positive and we've seen I think for the first time in a while that that's happening and so one of the positive news pieces that came out this week that Kathy was referring to is um crisper Therapeutics and vertex Pharmaceuticals are working on a drug together called exael it's for both CLE cell disease and beta Thalia which are inherited blood disorders and um in the United States there's about 100,000 people who suffer from CLE cell disease 20 million world World Wide so uh it's still considered a rare disease but a substantial amount of people are suffering and when you suffer it's an incredibly difficult disease um and so this week uh they hosted an Adcom which is essentially a panel of experts that weigh in on both the efficacy the safety and you know potential uh ideas in terms of commercialization for the product um I listened to it it was around you know 9:00 a.m. to about 4:15 they wrapped up a little bit early there was no vote um it was just an incredibly positive uh conference one of the things I most enjoyed was listening to the patients firsthand uh of their experiences with the drug uh so I think we'll play just a snippet for you all just to see these are things that when we talk about our Technologies they're not Technologies in a vacuum you know Kathy and and us at ARC we always talk about the convergences between and among Technologies these are Technologies within the multiomic space that are going to be revolutionary because they save patients lives and so we'll just a quick clip of one of the first patients ever treated with Exel uh to hear her experience on it because I think no one can do it better than her good afternoon I do not have any TI um to get paid financially to be at this meeting my name is Victoria gray I'm a 38 year old mother and wife um I am the first cell patient to be treated with Chris for Jee therapy before this treatment my entire childhood and most of my adult life life was plagued with severe pain fatigue numerous Hospital Stags and the fear of dying the pain would come on so suddenly it felt like I was being hit by a truck and shuck by lightning at the same time in order to manage my pain I had to take three different opioids oxycodone theed and fol even with this combination I was still in a lot of pain I receive regular blood transfusions and hopes to increase my blood counts and improve my symptoms of pain and fatigue but it was only a temporary Solution One hospital St in particular has been permanently imprinted into my mind it was in October 2010 that I had one of the worst sell crisis of my life it ended my college pursuit of being a nurse with this crisis I was awake for three days straight I couldn't use my legs or my arms I was in so much pain that I couldn't even lift my hips enough to sit on a bed pan I couldn't lift the fork to feed myself or use my hands to was my face I depended on physical therapy team to help me regain the control of my body this was all a result of a severe pain episode from CLE cell disease I didn't get released from this Hospital stay until January 2011 I miss Thanksgiving Christmas and all four of my children's birthdays I became so weak from being beat down by this disease I had to have someone come into my home to help me with my normal day-to-day routines it wasn't until my son's teacher called me to say that his behavior had changed excuse me because he thought that I was going to die I knew I had to fight for my kids when I met Dr F in Nashville he presented the opportunity for me to join Jean Therapy trial I said yes without hesitation knowing that I would be the first person but this was my opportunity to fight after receiving this treatment I no longer have pain so I no longer have to take opioids I no longer have hospital stays or receive blood transfusions I get to participate with my kids and join them in their activities when they play sports chill them on at their dance events and just be here and just to play with them in knowing that I no longer have to leave them to go to the hospital I now work fulltime and I contribute to my my household and my community I believe if you say yes to this treatment that it's going to change the lives positively of many people who are suffering from diseases and disorders who now feel hopeless but once it's come they can feel hope again just like I did thank you so I think that was just a taste there were you can access the link online I I think we'll be able to provide that for everyone and you know I highly encourage anyone who who's interested to listen to the stories of all the the brave people who have tried um and been on these trials for Cle cell and other gene therapy and Gene editing therapies and um we look forward to hearing what happens at their Padua date which is the date in which the FDA will say whether they can commercialize the therapy or not uh it's December 8th for ccal cell disease and then it's March 30th uh for beta Thalia and as we always say Innovation solves problems Innovation uh will transform the world and make it a better place and you know it's been such an interesting Journey during this interest rate increase all the fear investors running back to their benchmarks selling Innovation selling long duration assets not believing that cures actually uh were uh upon us uh even though Victoria gray had gone through this trial I think she's nearly at the end of her third year and we had been watching it uh no safety issues um cured that just wasn't a concept before now for sickle cell disease and beta Thalia uh so as Victoria said great hope and uh we believe that this moment is much like the moment we experienced uh when the biotech movement started with Genentech and that created one of the greatest investment opportunities in the Life Sciences Healthcare space of our lives and this we believe is bigger so thank you once again uh and we will look forward uh to to presenting again next [Music] month” — ▶ 30:00

The speaker highlights Bitcoin's role as a strategic allocation and store of value, emphasizing its growing adoption beyond just 'digital gold' and its potential to enable new use cases through the Lightning Network. They note the parabolic growth in people buying and saving Bitcoin, even in a bear market, and its geopolitical implications. The underlying technology offers unique properties like irreversibility and settlement guarantees, which are superior to traditional financial systems, especially in emerging markets.

“Bitcoin is nobody's unit of account... I think a lot of us agree like Bitcoin is the end lbl at the end of the day but the products we build now you know face this Market reality.” — ▶ 30:00

ARK Invest views Bitcoin as a quality asset and a flight to quality, a stance they have held for years, now echoed by institutional figures like Larry Fink. They emphasize its decentralized nature, making it extremely resilient and hard to kill, and see the potential approval of a spot Bitcoin ETF as a significant positive catalyst for broader adoption and institutional acceptance.

“I think it is becoming clear that Bitcoin is potentially becoming more favorable with institutions and I think you get a sense of that in this you know recent news and it was specifically around Larry thinkink who is the CEO of Black Rock and he is talking about Bitcoin and he used the actual phrase um this recent rally in Bitcoin to him indicates uh a flight to Quality and so his uh view of this recent rally in Bitcoin has been that you know institutions retail are looking at Bitcoin as a quality asset” — ▶ 07:00

Dr. Laffer and Cathie Wood argue that Bitcoin, as a global, rules-based monetary system, offers a superior alternative to fiat currencies, especially given the historical mismanagement of the dollar. They believe its decentralized nature and ability to circumvent government control make it a powerful tool for financial freedom and a potential replacement for major world currencies, with this transition possibly happening very quickly.

“I love Bitcoin is because it's Global because it's not controlled by a monetary Authority in one country and it can be circumvented totally and it can be made Anonymous I love that anonymity.” — ▶ 30:00

ARK Invest believes Bitcoin is poised for 'explosive growth' as it enters the steep part of its S-curve, similar to AI. They highlight its convergence with energy ecosystems, enabling utilities to overbuild solar/wind by using excess power for Bitcoin mining. Furthermore, Bitcoin's role as an internet-native payment rail, particularly via the Lightning Network, is seen as critical for enabling micro-payments for AI services, reducing transaction costs and fraud risk, and democratizing access to powerful AI tools globally.

“I think we are at a very similar point in both Bitcoin and AI, they're both moving into the steep part of the S-curve, so you have S-curves feeding S-curves creating opportunities for explosive growth potentials.” — ▶ 10:00

ARK Invest maintains its long-term bullish stance on Bitcoin, emphasizing the clear need for an accessible spot ETF product in the US, which they believe is imminent due to regulatory evolution and court decisions. They also highlight Bitcoin's role in an internet-native financial system, especially its convergence with AI to enable efficient, autonomous transactions without traditional intermediaries, offering a significant advantage over existing payment systems.

“We Stand by our position that you've heard from us before that there is a clear need for an accessible way for U.S investors to gain the exposure to crypto through a regulated spot ETF product and more than ever we do think the writing is on the wall that that is coming here in the United States.” — ▶ 6:00

ARK Invest's David Fuel highlights that Bitcoin's on-chain activity is neutral to positive, with extremely low 90-day realized volatility, similar to levels seen before the 2021 bull market. He also points to decreasing 'liveliness' (less coin movement) and a strong holder base as bullish indicators, suggesting a period of consolidation often precedes bullish moves, especially with the upcoming halving event in April 2024.

“However, specifically this month it was very significant to us the the very low levels of volatility realize volatility on a 90-day basis let's say are extremely low as low as you know never seen since the last quarter of 2020 to give you a context of what was going on at that time that was uh the period of prior that preceded the 2021 bull market.” — ▶ 3:00

Cathie Wood believes Bitcoin is poised for a breakout to the upside, citing on-chain analytics that show very positive signals. She notes that volatility is at lows not seen since 2020, preceding a major move, and that Bitcoin has historically shown higher highs and higher lows in each cycle, indicating a secular bull market.

“given our on-chain analytics um the we're we're on the bullish side and we just put out uh the Bitcoin monthly uh this week and um and you'll see those signals on balance they're very positive so the internals of the market uh the on-chain analytics are are telling us uh that we're probably if there's going to be a break either way it will be a breakout to the upside” — ▶ 29:00

The speakers universally express high conviction in Bitcoin as a foundational, rules-based monetary system and a digital natural resource. They highlight its unique properties like censorship resistance, global accessibility, and its ability to empower individuals in emerging markets by providing a stable alternative to volatile local currencies and enabling access to energy infrastructure. The discussion emphasizes Bitcoin's role as a long-term store of value and a technology that fosters human flourishing.

“I'm also just immensely bullish the thought that someone was able to engineer scarcity finite scarcity to the to the tune of like the scarcity of life itself actually only two things I know I can guarantee is how many Bitcoins will be and the fact that I'll never live forever right and so would I you know it's it that so I'm just very bullish I'm very excited for where this asset is going to take our species and uh take my portfolio” — ▶ 1:00:00

Art Laffer and Cathie Wood express high conviction in Bitcoin as a return to a private, rules-based monetary system, akin to the pre-1913 gold standard. They believe it can provide long-term price stability and act as a superior numerator for contracts, contrasting it with the instability of government-controlled fiat currencies. They acknowledge current volatility but expect it to stabilize with broader adoption and the development of financial intermediaries.

“I look at Bitcoin and these others and you guys are far more expert than I by miles miles miles but I look at these as being a return to what really worked and in those centuries they re good money lasted prices were stable for long periods of time and the us became the preeminent now we did have Financial crises but they were over in six or eight months and the boom had gone now we have a crisis in the last for 15 20 years what's that those are terrible crises” — ▶ 24:00

Cathie Wood views Bitcoin as a flight-to-safety asset, citing its performance during the Regional Bank crisis as evidence. She believes it acts as a hedge against both inflation and deflation, offering protection from counterparty risks present in traditional finance. The potential approval of a Bitcoin ETF is also noted as a positive catalyst.

“we saw Bitcoin take off from nineteen thousand to thirty thousand when the Regional Bank crisis uh was uh in full uh force in March April and that told us the Bitcoin is a flight to safety currency it's a hedge against inflation it's a hedge against deflation deflation presents counter counterparty risk uh counterparty risks that do not exist in the world of Bitcoin” — ▶ 20:00

ARK Invest views BlackRock's filing for a spot Bitcoin ETF as a significant positive development for the crypto market. They highlight BlackRock's strong track record of ETF approvals (575-1) and the choice of Coinbase as custodian, suggesting institutional validation and potential for increased adoption. This move could signal a turning point for regulatory clarity and institutional entry into crypto.

“I think it's great I think you know last week we talked about how it seemed like the SEC was acting uh more political and trying to potentially overreach and now you've got black wrap coming out in support of crypto.” — ▶ 14:50

ARK Invest views Bitcoin as a 'flight to safety' asset, similar to gold, especially evidenced by its rally during the Regional Bank crisis. They believe that in times of economic uncertainty, investors will increasingly turn to innovative assets like Bitcoin as a safe haven.

“we have found it very interesting that Bitcoin and crypto generally rallied in the face of a crisis the Regional Bank crisis uh and that that was proof positive to us at least that uh that crypto and especially Bitcoin and and to some extent ether um have become flight to safety Vehicles much like gold” — ▶ 24:00

Wood argues that Bitcoin's recent price surge from $19,000 to $29,000 during the banking crisis demonstrates its value as a flight to safety. She believes its decentralized, transparent, and auditable nature, free from human decision-makers, makes it an antidote to traditional monetary systems, proving its concept as a robust alternative.

“Bitcoin came out of the ashes of 0809 and basically it was designed decentralized transparent auditable as an antidote a place again to go a monetary system to which investors can flee and that's exactly what's going on.” — ▶ 30:00

Cathie Wood notes that Bitcoin, typically a risk-off asset, acted as a flight to safety during the recent banking crisis, soaring 55% from its March 10th low. She believes this indicates broader adoption and acceptance, suggesting it will continue to be a flight to safety as the world transforms through innovation.

“this time it did the opposite from March 10th it when it bottomed at 19 500 it has soared 55 to 30 200 uh to two hundred and seventy dollars” — ▶ 34:00

The speaker argues that Bitcoin's resilience during the recent banking crisis and its ability to settle significant value globally make a compelling case for its inclusion in a broader portfolio. They believe the current economic instability serves as an advertisement for Bitcoin, attracting more institutional and individual investors, especially in regions with high inflation or unstable currencies. The development of the Lightning Network is also highlighted as a key factor for future adoption and usability.

“I think that as this Market keeps persisting as we see more and more cracks in the existing system I think it does continue to serve as an advertisement for it.” — ▶ 1:06:00

ARK Invest argues that Bitcoin's fundamentals are stronger than ever, despite recent price drawdowns, with metrics like market cost basis, hash rate, and long-term holder supply showing resilience. They believe Bitcoin will continue to significantly outperform traditional asset classes over the long term, projecting a potential price of $680,000 by 2030 in their base case, and up to $1.4-1.5 million in their bull case, driven by its role as a digital store of value and other use cases.

“despite some of the wild price swings over longer term time Horizons, Bitcoin in crypto We Believe will continue to significantly outperform asset classes.” — ▶ 10:00

ARK Invest maintains a strong long-term conviction in Bitcoin, viewing it as a novel form of self-sovereign, censorship-resistant money. They highlight its ability to withstand market turmoil, its transparent and auditable network rules, and its significant settlement volume compared to traditional payment systems, making it a compelling long-term opportunity.

“I think the opportunity for Bitcoin has never been more compelling especially the long-term opportunity when you look at traditional centralized monetary systems that continue to fail to provide strong economic assurances.” — ▶ 7:00

Balaji Srinivasan argues that Bitcoin serves as a 'digital gold' and a flight to safety amidst a central bank crisis and potential financial instability in the traditional banking system. He believes that the unpredictability of central bank policies, coupled with the increasing liquidity and digital nature of money, will drive people to exit the traditional system into Bitcoin, which offers a fixed and predictable supply. Cathie Wood agrees on Bitcoin's role as an insurance policy against confiscation of wealth and counterparty risk, especially given the current banking crisis and declining M2 money supply.

“My thesis is more about the desire to exit this economy than it is about the System Dynamics within which I just find unpredictable... people will want to get out of this economy at least in part because Bitcoin is something you know in one sense you can think of there being to first or only three true currency pairs in the world USD RMB RMB BTC and BTC USD because they're like three currency regimes.” — ▶ 16:00

Cathie Wood highlights Bitcoin's appreciation during the regional banking crisis as proof of its role as a store of value, similar to gold. She notes its limited supply (21 million units) and decreasing inflation rate, suggesting it's a big idea and an innovation at its best, with the potential to become a future global currency.

“it was fascinating to see uh Bitcoin and other crypto assets appreciate as Regional Banks imploding they are just like gold that is right” — ▶ 40:00

Cathie Wood argues that the Bitcoin blockchain has proven its resilience and transparency during recent banking crises, with no transactions interrupted. She views this as a strong proof of concept for decentralized and transparent financial systems, suggesting it will be a key component of future digital wallets.

“if you think about it first of all just think about crypto um the Bitcoin blockchain and ethereum those two blockchains have not skipped a beat there have been no transactions interrupted” — ▶ 30:00

ARK Invest is recommitting to its long-term price target for Bitcoin, expecting it to reach $1 million. The base case for 2030 is nearly $700,000, with a bull case double that. They believe crypto assets will rival and redefine traditional asset classes, with a potential 25-fold increase to $25 trillion by 2030.

“yes we are recommitting to the million dollars… our base case for Bitcoin for 2030 is almost 700,000 and our bull cases roughly double that for 2030.” — ▶ 30:00

Despite recent turmoil in the crypto space, Bitcoin has shown remarkable stability and resilience, with its underlying blockchain remaining robust. ARK's on-chain analytics suggest widespread capitulation, historically a sign of a market bottom, making it an attractive long-term investment.

“by many of our metrics and we will be putting out the Bitcoin monthly early next week by many of our metrics there is outright capitulation all over the place” — ▶ 40:40

The speaker believes Bitcoin is currently in a 'deep value' state, with on-chain indicators suggesting oversold conditions. They argue that the FTX collapse, while damaging reputationally, has solidified Bitcoin's position as a reliable asset, and that institutional players are waiting to accumulate at these lower prices, providing a strong floor.

“I think that there are like you said there are institutions that are watching the cryptocurrency space that when they look at the valuation how cheap it is to enter Bitcoin and build out the sizable position they aren't necessarily driven by the same hysteria or nervousness as other Market participants are and if there comes an opportunity to just go in and Bitcoin and and build out a big position that is going to be able to absorb a lot of the sort of nerve the nervous Capital that is trying to exit.” — ▶ 50:00

The speaker highlights Bitcoin's limited supply, contrasting it with fiat currencies, and notes its historical appreciation as a compelling reason to consider it. They also acknowledge its potential role in a reformed, more efficient payment system, despite current volatility and correlation issues.

“The great part about Bitcoin is it is limited it's not a fiat currency that could be pumped up the way we pumped it up in 2000 2021 to cause this inflation so long run it does have that characteristics but I think the banking system can't rest on its lawyers.” — ▶ 40:00

Cathie Wood argues that Bitcoin, despite its recent volatility, is an early-stage disruptive innovation with significant long-term growth potential. She notes its recent stability and on-chain analytics suggesting a bottoming period, comparing its current 'blip' to past growth trajectories of disruptive technologies. She believes the current economic turmoil will hasten the adoption of new technologies like Bitcoin.

“Bitcoin is an example of a very early stage innovation that we think has miles to go and so this down round is is in the early stages of early early stage growth the volatility is normal but then again when you look back historically that volatility which feels so awful at the time turns into looks like a blip if you look backwards and we think that's a case with truly disruptive innovation.” — ▶ 40:00

Cathie Wood notes that Bitcoin has been flatlining in the last month while other indicators are reaching new lows, suggesting it is holding up better than other assets. She believes that innovation, which Bitcoin represents, tends to outperform in the late stages of a bear market as it solves problems like supply chain issues and energy shortages. This indicates a potential bottom for innovative assets.

“Interestingly One Price indicator associated with Innovation is holding up beginning to hold up better than other prices and that's Bitcoin uh it's been interesting to see it Flatline in the last month uh While others uh other indicators are reaching for new lows now this is not surprising in the late stages of a bear Market in our experience Innovation starts to outperform in the late stages of a bear Market why does that happen It happens because Innovation is the new leadership Innovation solves problems Innovation solves the kinds of problems we have today supply chain food energy shortages think the genomic Revolution electric vehicles and so forth and so we believe believe that Innovation should outperform if we're toward the end of this bear Market if the fed's close to pivoting even in its rhetoric I think we are” — ▶ 30:00

ARK Invest notes that Bitcoin has historically found robust support at its 200-week moving average and the 2017 all-time high. The recent price action, including regaining these levels and trading above the on-chain cost basis (realized price), increases their bullish conviction, suggesting the market may have completed its mean reversion.

“so it's all indicative of a robust support level that it's so far holding but we're keeping an eye for you know any continuing in the um capitul capitulation in the in the crypto markets but also most importantly uh any further uncertainty in the macro environment” — ▶ 10:00

Cathie Wood highlights that Bitcoin has reclaimed its 200-week moving average, a positive technical sign. She also points to the new partnership between BlackRock and Coinbase, which legitimizes crypto as an asset class and could lead to significant institutional demand. ARK's research suggests that even a small allocation from BlackRock's platform could more than double Bitcoin's price due to limited liquid supply.

“it has reclaimed the 200-week moving average which is a little bit above i think 21 or 22 000 that's that's reassuring we've seen some stabilization there.” — ▶ 30:00

Cathie Wood expresses a neutral to positive stance on Bitcoin, noting that the recent market shakeout in crypto, while severe, has increased her confidence in the ecosystem's transparency and over-collateralization compared to traditional finance. She believes the systemic risk is diminishing and that the market is nearing capitulation, suggesting a long-term positive outlook despite potential short-term technical downside.

“I am feeling a lot better about what's going on in the crypto world right now... we're neutral to positive.” — ▶ 30:00

Cathie Wood believes Bitcoin is the first global, private, decentralized monetary system, which will have profound ramifications, especially for emerging markets experiencing currency crises. She also highlights ARK's research suggesting Bitcoin mining can accelerate the shift to renewables by making utility ecosystems more profitable.

“on the money revolution bitcoin and ether to some extent but bitcoin surely it is the most secure network out there um is the first and each one of these words is really important the first global private decentralized uh monetary system ever invented and it is going to have profound ramifications just ask the people in el salvador” — ▶ 20:50

Cathie Wood notes that Bitcoin has seen nine consecutive weekly declines, suggesting it might be oversold. She highlights that short-term holders have capitulated, and long-term holders are at an all-time high, indicating strong underlying support. Additionally, Bitcoin's 200-week moving average, historically a support level, is at $22,000 and rising, and futures are selling at a discount to spot, which often precedes volatility to the upside.

“it appears that the term holders and you can see everything in this ecosystem the transparency is amazing this does appear according to our metrics that short-term holders have capitulated that's very good news in terms of putting in a bottom long-term holders are at an all-time high at 65.7 percent” — ▶ 40:00

Peter Zeihan argues that Bitcoin is a 'dumpster fire' and will not last in the long term. He believes it is not a store of value, a method of exchange, or readily shiftable into the real economy. He also points out its dependence on the normal financial system, vulnerability to government actions, and high energy consumption for generation.

“Bitcoin is a dumpster fire that's uh I mean what you described with having a house with solar and a battery system that might work for about a tenth maybe maybe a tenth of the US population.” — ▶ 42:00

ARK Invest believes Bitcoin's long-term prospects are extremely promising, citing strengthening long-term holder behavior, significant economic throughput as a global settlement network, and successful network enhancements like Taproot and the Lightning Network. They project Bitcoin's market capitalization could increase by more than 25-fold to $28.5 trillion by 2030, driven by various use cases including digital store of value, portfolio diversification, and a global settlement network.

“despite the recent sell-off that we've seen this month we believe the long-term prospects for bitcoin remain extremely promising” — ▶ 0:29

ARK Invest expresses high conviction in Bitcoin as a long-term opportunity, viewing it as a novel trust-minimizing institution and the most profound application of self-sovereign digital money. They believe its principles of strong property rights, predictable monetary policy, decentralization, and conservatism make it the prime candidate for the monetary revolution, impacting all asset classes over time.

“we have such high conviction in the asset class and what the long-term opportunities look like” — ▶ 00:19

Cathie Wood argues that Bitcoin is the first global, private, decentralized monetary system, which will have profound ramifications, especially for emerging markets seeking independence from traditional currencies. She also believes Bitcoin mining can accelerate the shift to renewable energy by making utility ecosystems more profitable.

“Bitcoin and ether to some extent but Bitcoin surely it is the most secure network out there is the first and each one of these words is really important the first global private decentralized monetary system ever invented and it is going to have profound ramifications.” — ▶ 20:50

Cathie Wood highlights Bitcoin's utility as a neutral technology platform, citing its use for donations to Ukraine and as a currency hedge for Russian citizens against the depreciating Ruble. This demonstrates its real-world value during geopolitical crises.

“the crypto networks are are proving their worth as a neutral technology platform uh the we're seeing donations of both bitcoin and uh ether to to the ukraine... and we're also seeing bitcoin as a currency hedge for russian citizens who are watching the ruble um get get hammered here” — ▶ 30:00

Cathie Wood suggests that cryptocurrencies like Bitcoin offer significant diversification benefits due to their extremely low correlation with other asset classes over a full market cycle. She views crypto as a multi-faceted revolution encompassing money, finance, and the next-generation internet/metaverse, indicating long-term growth potential despite recent corrections.

“over a full market cycle the correlations the correlation between crypto assets and any other asset is extremely low which means for diversification purposes crypto is a very interesting asset.” — ▶ 36:00

Cathie Wood highlights Bitcoin's role as a hedge against inflation, citing recent positive regulatory news regarding stablecoins and the increasing acceptance of Bitcoin for salary payments by prominent city mayors. She also notes Jack Dorsey's strong endorsement of Bitcoin as the native currency of the internet, suggesting its long-term importance.

“Bitcoin is the native currency of the internet and so we thought that was very interesting.” — ▶ 40:00

Cathie Wood believes Bitcoin will continue to move up, citing El Salvador's adoption as legal tender and its use of volcanic energy for mining. She sees Bitcoin as a smart move for emerging markets to include in their reserves, especially as a hedge against dollar strength and a backstop during crises, similar to an insurance policy.

“many people wonder why are we positive on crypto especially bitcoin which is mathematically metered to top out at 21 million units... to have a backstop like bitcoin we think is an excellent insurance policy.” — ▶ 30:00

Cathie Wood suggests Bitcoin is a better hedge against inflation than gold. She notes that Bitcoin's supply diminishes over time, unlike gold, making it a more effective store of value in an inflationary environment.

“Crypto is a better hedge, Bitcoin in particular is a better hedge against inflation if that's the fear, then gold.” — ▶ 20:00

Cathie Wood views Bitcoin as a rules-based monetary system with a fixed supply of 21 million units, making it a strong store of value and a hedge against inflation and deflation. She believes it will become more environmentally friendly and offers social benefits by providing access to payment technology globally, especially in emerging markets dependent on remittances.

“this idea that purchasing power will go up over time if demand rises relative to supply supply ultimately fixed at 21 million units that's a very good thing purchasing power going up globally around the world and this idea that it's a hedge against a confiscation of wealth and that can take place in a myriad of ways but inflation and especially hyperinflation in emerging markets is the primary way talk about destroying purchasing power so that's a very big idea” — ▶ 20:00

Elon Musk supports Bitcoin and cryptocurrency in general, viewing it as an information system that improves economic efficiency. He states Tesla will resume accepting Bitcoin payments if there's a confirmed trend towards 50% or more renewable energy usage in mining, indicating a positive shift in its environmental impact.

“now it looks like bitcoin is shifting a lot more towards renewables and a bunch of the heavy-duty coal plants that were being used unequivocally being released this is not a question mark have been shut down especially in the channel so I think and we wonder a little bit more diligence to confirm that the confirm that the percentage of renewable energy usage is most likely rather about 50 and that there is a trend towards increasing that number and if so then tesla will resume accepting bitcoin” — ▶ 35:00

The speaker highlights inefficiencies in prediction markets regarding Compass Pathways' NDA submission for COMP360 psilocybin. Despite positive developments like expedited FDA approval processes for psychedelics, the market odds have not significantly increased, suggesting an undervalued opportunity.

“When will Compass Pathways submit an NDA for comp 360s psilocybin for treatment resistant depression? And what's interesting about this this is where there are inefficiencies in these markets.” — ▶ 33:00

The speaker believes Meta is misunderstood, with strong top-line revenue growth driven by AI integration in advertising. Despite market skittishness over increased capex, they argue Meta's investment in AI for internal use (unlike cloud providers selling compute) will lead to significant monetization and engagement improvements across its platforms, making it a compelling long-term investment.

“I think Meta is probably the most misunderstood mega cap here. uh because you have a company growing 33% topline revenue on the advertising business it's continuing to tick up accelerating uh clearly seeing improvement from uh embedding AI into the advertising stack and yet every time they decide to raise their capex numbers the street gets skittish and tries to sell the name off.” — ▶ 00:01:00

The analyst expresses concern about Meta's ability to monetize AI effectively, despite its large user base and advertising expertise. They question if Meta can compete in a market shifting towards purchasing agents and direct pay, where Meta lacks a strong digital wallet. The high capex for AI might lead to compressed margins even with continued ad dominance, and there are concerns about the strategic footprint for consumer AI monetization.

“It's unclear that Meta is very well set up for that future because they don't have like a strong digital wallet play.” — ▶ 42:00

The analyst believes Meta is making significant progress in the AR/VR space with their new Ray-Ban display glasses, offering an affordable and potentially useful product. They highlight Meta's velocity and investment in the technology, suggesting they are well-positioned to lead in this emerging product category, especially compared to competitors like Apple and Snapchat.

“I would bet on Meta's velocity and trajectory here relative to Apple even though they're AirPods.” — ▶ 24:00

The analyst believes Meta has the most upside in the current AI landscape due to its massive distribution footprint, reaching half the connected globe daily. They anticipate Meta will effectively leverage its open-source Llama models and productize AI in a meaningful way, especially through its Ray-Ban and Oakley smart glasses, which can serve as a distribution point for an AI operator business. This strategy allows them to capitalize on AI without disrupting an existing platform.

“I think meta has the most upside here in this world I think one if you look at it they have the largest distribution footprint you know they're reaching three billion so half of the connected Globe daily” — ▶ 40:50

Meta is rumored to be launching an AI search product, which is seen as a logical move given its vast data across Instagram, Facebook, and WhatsApp. This data, combined with publicly available internet information, could create a powerful search engine with significant distribution, potentially disrupting the current search market.

“we should end we should end with another piece of news which is meta another rumor um they are now potentially going to offer an AI um search product which is quite interesting.” — ▶ 19:40

The analyst believes Meta is leading among big tech companies in AI, effectively integrating AI products into its current offerings like advertising and content creation across its platforms. They highlight the long-term potential of Meta's hardware initiatives, such as the Ray-Ban glasses and the future Orion AR glasses, which are starting to show a payoff from significant capex investments. The company's open approach to development and its ability to pivot from earlier metaverse criticisms are seen as strengths.

“I think they are, in my opinion, leading in terms of the big tech companies when it comes to AI and it may be just that they're very clear in their communication of how this is going to be incorporated versus some of these other companies that have touched on it.” — ▶ 20:00

Cathie Wood views Meta Platforms as a significant beneficiary of the new AI world due to its strategy of open-sourcing large language models. She believes this approach allows other developers to improve the models, which Meta can then integrate back into its platform to build specialized consumer-facing AI applications, leveraging its consumer-facing business model.

“So Meta Platforms is definitely a beneficiary of this new world.” — ▶ 42:40

The analyst expresses high conviction in Meta's Ray-Ban smart glasses, citing their practical functionality as sunglasses, high-quality camera, and integrated Meta AI. They believe the product represents a significant step forward in consumer hardware, offering hands-free computing and a glimpse into a future of seamless AI interaction, especially with upcoming multimodal AI capabilities.

“I'm going to take a leap here and say that this is the first time I have felt like okay a pair of glasses could work.” — ▶ 14:00

The speaker highlights Apple's custom silicon as a key advantage, enabling high-performance local AI models on their devices. They suggest that this raw horsepower, previously used for superficial operating system features, can now be leveraged for genuinely useful applications, making Apple's hardware increasingly valuable for productivity and professional tools.

“This idea that kind of like their computers and stuff are are being heavily used to run local agents I do think is an interesting you know they've spent if you think about the option value they have as a business it's not just the consumerf facing hardware constellation that everybody's kind of trapped in to some degree but it's also they've spent they have developed really cutting edge custom silicon.” — ▶ 00:14:00

The analyst places Apple 'on watch' for its lack of significant in-house generative AI development, contrasting it with Google's aggressive integration. They argue that Apple's current strategy of partnering with OpenAI and offering limited 'Apple Intelligence' features is insufficient and could lead to a loss of market relevance if they don't leverage their hardware ecosystem with proprietary AI.

“I'm putting them on watch. They have now in my opinion 6 to 12 months to put something out there that makes sense in the broader vision of where we think and I think the market in in general thinks AI is headed.” — ▶ 11:50

ARK Invest suggests that Apple's dominance is under threat due to recent legal rulings favoring developers like Epic Games, which could significantly impact App Store revenue by allowing external payment links. Additionally, they point to AI blunders with Siri and the slow adoption of the Vision Pro as signs of weakening execution and innovation, making the stock less attractive despite its large user base.

“So, in recent conversations about Apple, we have AI blunders with Siri. We now have a crack in the app ecosystem walled garden. Um, that seems Is there a third is there a third leg to this uh wobbly stool?” — ▶ 10:00

Cathie Wood expresses concern about Apple, suggesting it will be impacted by disruption to the traditional world order. While it may still deliver good returns, it is not considered a 'true disruptor' in the current market environment.

“We worry about Apple as we've told you many times.” — ▶ 30:00

Brett argues that Apple's ability to execute on its vision has degraded, citing delays in AI features, the failure of the Apple Car project, and poor performance of the Vision Pro. He believes the company is losing its edge in innovation and that its current high valuation is unsustainable given its lowest three-year revenue growth since the App Store launch. He suggests Apple could become a 'dumb hardware' company if it doesn't adapt to the transformative nature of AI.

“the market is essentially saying apple is fine we are willing to pay an extraordinarily High multiple for cash flow because we think that they are going to you know they have all this distribution they're going to turn around and turn that into into you know um this distribution is going to lead them to being the continued leading tech company in the AI age uh and the most valuable company in the world on a forward basis and I think that's a dangerous stance to take” — ▶ 12:00

The analyst expresses concern about Apple's long-term prospects, citing its high valuation relative to the durability of the iPhone franchise in a rapidly changing AI landscape. They point to Apple's China exposure and the perceived failures of recent product launches like the Vision Pro and Apple Intelligence, suggesting a loss of their 'magic' in curating products. The analyst believes the shift towards AI-driven operating systems and services could disrupt Apple's current device-centric model, making its substantial enterprise value vulnerable.

“no apple is 3.7 or 3.8 billion trillion sorry 3.8 trillion in market cap at least as of year in 24 uh and and of all the mag 6 it's the most valuable uh in part because it's trading at a higher multiple you know than it has historically as if as if the iPhone franchise is more durable not less durable” — ▶ 43:00

The analysts discuss Apple's strategic positioning with its new AI features, acknowledging its strong balance sheet and distribution. They believe Apple's privacy stance is beneficial for user trust but might impair its ability to push the frontier of technology forward, leading to an uncertain future despite its current dominance.

“I think that they are well positioned and they have a sound corporate strategy for where they're at given both their strengths and weaknesses that doesn't mean they they see where it's headed as in I I agree that context is really important and you know if the way that they've pitched it it can really operate given the context that it has within the Apple ecosystem I think people will find that useful.” — ▶ 20:00

The analyst suggests avoiding Apple due to its restrictive ecosystem and high take rates, which are causing growing frustration among developers. This could lead to a significant disadvantage if a disruptive technological shift occurs, as developers might abandon Apple's platform for more open alternatives, impacting its services revenue and market position.

“all of that pent up frustration and and and anger that's been building in the system it doesn't bode well for apple” — ▶ 14:50

ARK Invest sees Ethereum as a leader in the smart contract industry, contributing to a projected $28 trillion total market for cryptocurrencies and smart contracts by 2030. Its valuation is increasingly shifting towards a monetary premium, similar to Bitcoin, indicating its growing status as a store of value within the digital asset ecosystem.

“And on the other hand, we also think that part of that ultimate 28 trillion target uh is going to come out of uh the market cap capitalization of the smart contract cohort led by Ethereum and Solana.” — ▶ 44:00

Wood identifies Ether as one of the 'big three' winners in the evolving crypto ecosystem, alongside Bitcoin and Solana. She implies a positive outlook on its future as a key player in the new technological layer of the internet, capable of handling agentic commerce.

“It won't be of course just Bitcoin, it'll be Ether importantly, Ether, Solana, maybe hyperliquid, we shall see, but what's interesting about this period is the big three have been identified and those are Bitcoin, Ether and Solana.” — ▶ 15:00

Tom Lee argues that Ethereum could 'flip' Bitcoin in market cap, similar to how Wall Street and equities surpassed gold post-1971. He believes Ethereum will benefit from the tokenization of real-world assets and the innovation of Wall Street on its smart contract platform. Bitmine, as a digital asset treasury, aims to provide permanent capital and liquidity to the Ethereum network, helping bridge traditional finance with DeFi.

“So digital gold is Bitcoin. And so in that world, we believe Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold um post 71.” — ▶ 24:00

Tom Lee argues that Ethereum is poised to 'flip' Bitcoin in market capitalization, similar to how equities surpassed gold after 1971. He believes Ethereum will become the dominant platform for tokenized real-world assets and financial innovation, especially with increasing regulatory clarity and Wall Street adoption. The network's neutrality and 100% uptime make it ideal for building future financial systems.

“We believe Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71.” — ▶ 27:00

The Dencun upgrade (EIP 4844) significantly reduces transaction costs and increases throughput for Layer 2 solutions on Ethereum. This is a crucial step in Ethereum's long-term scaling roadmap, making the network more efficient and cheaper for end-users, which is expected to drive adoption and utility.

“the Denon upgrade was particularly important for these Slayer twos because they were going to I mean they did decrease the the transaction cost for users transaction on on these on these layer twos so hopefully this is the state this is the first stage of a very Broad and long ethereum scaling road map” — ▶ 3:00

Ellie suggests that Ethereum, despite current transactional capacity limitations, is poised for new business models due to innovations in scaling solutions. This evolution from 2G to 3G-like advancements will enable more efficient and transactional applications, attracting diverse entrepreneurs and developers.

“when you move away from like 2G to 3G to 4G so from like dialog to bandwidth you can have new business models that wouldn't be possible the DI up era of the 1990s and that's how we're going to see now more and more business models” — ▶ 43:40

ARK Invest considers Ether, alongside Bitcoin, as a 'flight to safety' asset, noting its rally during the Regional Bank crisis. They suggest that both cryptocurrencies are increasingly perceived as safe havens in uncertain economic environments.

“we have found it very interesting that Bitcoin and crypto generally rallied in the face of a crisis the Regional Bank crisis uh and that that was proof positive to us at least that uh that crypto and especially Bitcoin and and to some extent ether um have become flight to safety Vehicles much like gold” — ▶ 24:00

Cathie Wood observes that Ether, like Bitcoin, acted as a flight to safety during the banking crisis, rising 51%. She interprets this as a sign of increasing adoption and acceptance, positioning it as a key asset in a transforming global economy driven by innovation.

“ether has has gone up 51 from 1370 to 2076.” — ▶ 34:20

The speaker expresses strong optimism for Ethereum, particularly due to technological advancements like Layer 2 solutions and account abstraction, which are expected to significantly improve user experience and drive mainstream adoption. They anticipate a 'dial-up to broadband' moment for Ethereum, leading to hundreds of millions of users. The upcoming staking de-risking event is also seen as a major catalyst, potentially positioning staked ETH as a risk-minimized yield asset comparable to the treasuries market.

“I think that um the innovations in layer twos and account abstraction in particular as a framework for usability is going to mean that users are going to be able to download software-based wallets transact directly natively without having to understand much without having to go buy a crypto commodity in order to pay gas fees they're going to be able to use stable coins natively.” — ▶ 1:13:00

ARK Invest is bullish on Ethereum, citing its successful transition to proof-of-stake as a significant positive development. They believe public blockchains like Ethereum are crucial for facilitating financial services and contracts outside traditional institutions, and that the underlying technology is resilient despite market turmoil.

“some some positive notes including ethereum successful transition to proof of stake after years of anticipation” — ▶ 3:00

Cathie Wood highlights Ethereum's blockchain as a robust system that has not experienced any interruptions during recent financial turmoil. She sees this as validation for decentralized and transparent financial networks, which she believes will form the basis of future digital wallets.

“if you think about it first of all just think about crypto um the Bitcoin blockchain and ethereum those two blockchains have not skipped a beat there have been no transactions interrupted” — ▶ 30:00

ARK Invest is confident in Ethereum's future, noting that the Merge has led to deflation in the number of Ether, making it a robust asset. They project smart contract fees, which include DeFi and NFTs, to grow from $11 billion last year to $450 billion by 2030.

“ether I think has just moved into a decline in ether that's a that's quite that's quite a robust statement right there and we do see smart contracts fees generated by smart contracts moving from 11 billion so nascent last year with defy a part of it nfts as well 11 billion last year to 450 billion by 2030.” — ▶ 30:50

The speaker suggests that Ethereum, like Bitcoin, has shown resilience despite market turmoil. They believe that the core case for Ethereum remains strong, and that the current market conditions present a 'get rich slow' opportunity, with the asset having proven its robustness through multiple cycles.

“I think the case for Bitcoin and ethereum it's it's not the same it's actually quite a bit stronger than it's ever been and that um you know the that they are truly good get rich slow schemes.” — ▶ 1:04:00

ARK Invest observes that Ether has shown significant outperformance relative to Bitcoin, especially in the last month, indicating a shift from risk-off to risk-on sentiment. This strength is attributed to progress on the network's transition to proof-of-stake (the Merge) and changes to its tokenomics, which are seen as net bullish for the crypto ecosystem.

“so seeing the strength is net bullish for crypto as a whole” — ▶ 19:50

ARK Invest believes Ethereum and its native currency Ether have significant value accrual potential due to their role in decentralized finance (DeFi). They argue that DeFi is driving a financial revolution by offering more transparent, efficient, and inclusive financial services, with Ethereum as the underlying public blockchain. The platform's ability to support smart contracts and its growing ecosystem position it to capture a significant share of the global financial services market.

“Ultimately as we see more and more use cases especially financial services functions being deployed on chain we expect revenue and subsequent market cap to accrue to the underlying blockchain Ethereum and its native currency Ether.” — ▶ 15:00

Cathie Wood includes Ether as part of the 'money revolution' alongside Bitcoin, acknowledging its role in the evolving decentralized monetary system. While not as emphasized as Bitcoin, it's presented as a key player in the future of finance.

“Bitcoin and ether to some extent but Bitcoin surely it is the most secure network out there is the first and each one of these words is really important the first global private decentralized monetary system ever invented and it is going to have profound ramifications.” — ▶ 20:50

Cathie Wood points to Ether's role, alongside Bitcoin, in demonstrating the value of crypto networks as neutral technology platforms. She notes its use in donations to Ukraine, showcasing its practical application during times of crisis.

“the crypto networks are are proving their worth as a neutral technology platform uh the we're seeing donations of both bitcoin and uh ether to to the ukraine” — ▶ 30:00

Cathie Wood suggests that cryptocurrencies like Ether offer significant diversification benefits due to their extremely low correlation with other asset classes over a full market cycle. She views crypto as a multi-faceted revolution encompassing money, finance, and the next-generation internet/metaverse, indicating long-term growth potential despite recent corrections.

“over a full market cycle the correlations the correlation between crypto assets and any other asset is extremely low which means for diversification purposes crypto is a very interesting asset.” — ▶ 36:00

Cathie Wood highlights the DeFi space within the Ethereum world as solving the problem of low yields in traditional cash and bonds. She notes that DeFi offers 3-4% yields, attracting younger investors despite perceived risks.

“We're also seeing DeFi in the Ethereum world solve problems, the problem that other people have is they can't find enough yield in cash and bonds and so forth and so the DeFi space is providing three to four percent yields where no other place is.” — ▶ 20:25

Elon Musk mentions owning Ethereum personally, alongside Bitcoin and Dogecoin. He suggests that Ethereum, like Bitcoin, could scale to handle a vast number of transactions with a layer two system, indicating a belief in its long-term potential.

“I do own bitcoin and tesla owns bitcoin spacex and bitcoin and I do personally I want to go to ethereum and dogecoin of course” — ▶ 14:00

Cathie Wood expresses concern that proposed taxes on cryptocurrencies, particularly those aimed at funding the infrastructure bill, would significantly harm the evolution of decentralized finance (DeFi), which is primarily based on the Ethereum network. She believes such regulation could drive technology and innovation away from the US.

“we worry that our legislators could with an act like this chase away technology from our shores already the U.S. has had a terrible reputation in terms of regulation around crypto crypto assets.” — ▶ 6:00

ARK Invest includes Solana as a key player in the smart contract cohort, which is expected to contribute significantly to the overall digital asset market growth towards $28 trillion by 2030. While currently more fee-based in valuation, ARK believes it could develop a monetary premium over time as it solidifies its position as a leading Layer 1 platform.

“Salana uh uh right now although it's training lower is still very much on a fee based valuation and revenue base but you know we believe as it's a winner takes most even on the smart contract uh L1's over time we could have like three or four platforms that have significant monetary premium where most of the valuation is derived from from that.” — ▶ 50:00

Wood includes Solana as one of the 'big three' cryptocurrencies that have been identified as winners in the evolving DeFi ecosystem. She suggests it will play a significant role in the new technological layer of the internet, facilitating agentic commerce.

“It won't be of course just Bitcoin, it'll be Ether importantly, Ether, Solana, maybe hyperliquid, we shall see, but what's interesting about this period is the big three have been identified and those are Bitcoin, Ether and Solana.” — ▶ 15:00

The speaker believes Solana is a fantastic investment due to its ability to handle smart contracts and decentralized finance (DeFi) at high performance, making it suitable for rebuilding Wall Street on a blockchain. It is seen as a growth-oriented asset with native yield generation through staking, unlike Bitcoin. The Middle East's strategic focus on Solana for innovation and its low-latency capabilities for high-frequency transactions further support its potential.

“I like Salana. I think Salana is a winner. I think Salana has fantastic qualities that makes me want to invest in it, but I'm not religious about it. I would I I don't boost Salana at the expense of Bitcoin, for example. But I do think it's a fantastic investment.” — ▶ 23:00

ARK Invest is bullish on Solana due to its high performance, decentralization (evidenced by validator distribution), and the high quality of its developer ecosystem and applications. They believe Solana has achieved 'escape velocity' in metrics like tokenization and stablecoins, with exciting developments expected in the next 12 months. The core thesis is that Solana's single, giant atomic state machine, optimized for speed and parallel compute, will eventually handle all global financial transactions, leading to maximum capital efficiency and liquidity.

“Yeah, I mean we're definitely very we're definitely bullish at at at Arc I would say Solana I think in terms of you know it is like a high performance blockchains but you know as we were talking with with Anatoli like it is quite decentralized like if you look at the number of validators and kind of geography distribution uh it's really way more decentralized than a lot of other competitors that we've uh we've cited like on the podcast” — ▶ 2:00

ARK Invest believes Solana has made a tremendous comeback, demonstrating superior transaction throughput compared to Ethereum and its Layer 2s combined. It is attracting a significant number of new developers and is aggressively improving its base layer with new execution clients, positioning it as a top contender in the digital asset industry.

“Solana has been really the biggest comeback story of 2024. With the price of the token at $8 in the depth of the bare market, we've seen a tremendous turnaround of Solana with really a focus on the base layer with strategic tradeoffs and a high performance design.” — ▶ 7:50

Solana is presented as a major comeback story, demonstrating significant transaction throughput and growing developer activity. ARK Invest sees Solana competing with Ethereum and Bitcoin in key metrics, positioning it as a top-tier digital asset due to its strategic tradeoffs and high-performance design.

“Solana has been really the biggest comeback story of 2024 um with the price of the token at $8 in the depth of the bare market we've seen a tremendous turnaround of uh of salana with really a focus on the base layer with strategic tradeoffs and a high performance design Solana now does four to five times more uh transaction throughput than ethereum and its layer twos combined” — ▶ 19:40

The speaker argues that despite Solana's significant drawdown and association with FTX, its core developer and user community remains strong and dedicated. They see Solana as an 'underdog' with a unique set of trade-offs that appeal to a specific segment of the crypto community, particularly in the NFT ecosystem, suggesting potential for a comeback.

“I think that actually after BTC and eth Seoul is most used in an internal economy of any crypto asset out there and so like I think it's a ways from being able to make money-ness claims um but like I see ingredients where like I think that Seoul could have a large economy running on top of it and I think that Seoul could be a widely used Native asset within that economy that's not just speculative.” — ▶ 56:00

ARK Invest acknowledges Nvidia's current dominance in the AI compute market, particularly with its Rackscale solution (Grace Blackwell) offering superior performance per dollar for large models. However, they anticipate increased competition from AMD's upcoming Helios solution and custom silicon projects from hyperscalers, suggesting a potential shift in market dynamics.

“But what we're going to see through the rest of 2026, which is important for forecasting where we're going to go, is that AMD AMD is coming to market with their own rack scale solution called Helios that they expect to go toe-to-toe with Nvidia's next generation Vera Rubin.” — ▶ 21:00

The speaker argues that the recent sell-off in Nvidia shares is not indicative of a bubble popping in AI. They believe the demand for AI tools and chips will continue to grow significantly, driven by increasing productivity and user adoption, suggesting that the underlying value supports Nvidia's position despite recent sales by major investors.

“I think the bubble won't actually deflate until you get over your skis against in demand. And there's no indication, at least that I can see, that that that's going to happen or likely to happen.” — ▶ 3:00

The analyst is uncomfortable with Nvidia's high margins given the increasing competition in the AI chip space, particularly on the inference side where Nvidia's moat is less significant. While acknowledging the massive future demand for AI compute, they anticipate other major players like Amazon, Meta, and Tesla developing their own training chips. This competitive pressure, combined with Nvidia's current high valuation, makes the analyst cautious despite the overall growth in AI compute demand.

“I am uncomfortable with nvidia's margins and we have uh larger than anybody in the world that publishes forecast expectations for AI compute compute Demand by 2030 and deep seek R1 does not make me want to diminish that forecast I think maybe even raise it even more so those are the kind of like ways that I think about it uh and it's it's really expensive for what it's doing today” — ▶ 52:00

The speaker believes Nvidia will continue to climb because they are still in the early stages of the AI shift, despite increasing competition in the chip space. They acknowledge that market forces will lead to more differentiation among chip builders but do not see Nvidia's growth trajectory ending soon.

“do I think that Nvidia doesn't continue to climb no because again I think we're only in the beginning of the shift right” — ▶ 16:00

ARK Invest suggests avoiding Nvidia due to its current market dominance and high gross margins, which may make it vulnerable to disruption. The rapid pace of AI innovation could render its specialized GPU architecture less optimal compared to newer, more flexible designs. Additionally, Nvidia's established business model and focus on large opportunities might prevent it from adapting quickly to emerging market segments or adopting open-source approaches, creating an 'innovator's dilemma' that could limit future growth.

“I will say though, you don't have to believe my words, you can believe history. The IBM 360, they thought that was the it's the best, right? It's going to do all the things everybody needs to do... and then you have these shifts in the market.” — ▶ 23:50

One analyst suggests that if AI capability plateaus, Nvidia's need for further GPU sales might diminish, implying a potential downside for the company if the performance frontier of AI models is reached soon.

“if the models are ASM toting imagine AI we're at the kind of like late stages of AI and and Nvidia is going to fall apart here because who needs to buy you know 100 billion more gpus because we've gotten enough and any additional performance it's not that big a deal.” — ▶ 14:00

Cathie Wood acknowledges Nvidia's past success and its role in the AI age but states that ARK has downsized its position. She argues that for Nvidia's parabolic growth to be sustained, significant gains must be seen in other companies, which has not yet materialized. Additionally, she points to increasing competition from other chipmakers and hyperscalers as a reason for caution.

“But what we've been saying for some time now is that if Nvidia is going to continue to appreciate at this at its recent rate which is quite extreme of course, I think those of you who know us know that we wrote it for a hundredfold move and there's been and we've missed a a a three-fold move that is what happens as you move into parabolic momentum moves in the market and everybody jumps on board but if that is right the parabolic move here then we better see some big gains in other companies and and we thought we would see them in the last few quarters we really haven't we really have not.” — ▶ 40:00

ARK Invest believes Nvidia is a strong buy due to its continued execution at a rapid pace, particularly with its new Blackwell architecture offering significant performance improvements for AI models. The company's strength lies not just in hardware but in its comprehensive ecosystem, including software like NIMS and the Cuda framework, which creates a significant moat against competitors. They are also effectively monetizing their software offerings, such as the AI Enterprise subscription.

“Nvidia is a um uh provides the system in infrastructure not just a single chip that they provide the total package and that's what's really hard to with both in terms of multiple Hardware components but also the software that stitches it all together.” — ▶ 20:00

Cathie Wood suggests pulling back on Nvidia due to its significant momentum-driven rally, attracting short-term investors who may flee at the slightest hiccup. She anticipates a potential cyclical correction, similar to past market events, despite acknowledging Nvidia's strong long-term position in the AI age.

“why do we why do we are we pulling back on Nvidia it is simply for that reason and um and yet we think Nvidia is in one of the best uh positions among all companies uh when it comes to the AI age” — ▶ 37:00

Cathie Wood suggests caution with Nvidia, despite its strong performance and role in AI. She warns that while the AI wave is powerful, expectations for hardware companies like Nvidia might be getting ahead of themselves, similar to past cycles like the crypto boom where double and triple ordering led to significant stock corrections. She implies a shift in emphasis from hardware to software in their strategies.

“even though this is a huge SEC secular growth story there are there's so much in the way of expectations now being built into the check the box AI and believe me it's an important box Nvidia has done a magnificent job we bought it from you know from from from the time we started the company we're involved with it when it was $5 and just when we understood we built it enormously but the but it is subject to cycles” — ▶ 30:50

The speaker acknowledges Nvidia's current success as a beneficiary of the generative AI boom, particularly for its GPUs which provide the necessary compute power. However, they suggest that value will accrue more at the bottom (compute) and top (application layer) of the AI stack, implying that while Nvidia is a strong initial winner, the long-term competitive landscape for model providers in the middle might be squeezed.

“We've obviously seen the uptick from an Nvidia because that that's going to lead right like okay I need the compute to even get to the starting line sure then once you're at the starting line what's going to happen.” — ▶ 0:42:00

ARK Invest acknowledges Nvidia's significant role in the AI hardware space, noting its substantial growth and market recognition. However, they suggest that while Nvidia will continue to do well, the next wave of value creation will shift towards software and services built on top of this hardware, implying that the current valuation might be stretched relative to future opportunities in other areas of AI.

“many are treating Nvidia like it is the only a i i idea out there well we have uh we have a different perspective and uh I would like to now introduce you all to Frank Downing who will start off uh this part of our AI analysis” — ▶ 03:00

The speaker highlights Palantir as a company successfully leveraging AI by taking enterprise data, contextualizing it into an ontology, and enabling agents to combine business data with LLMs for productivity. They note its US business is growing over 100% year-on-year and accelerating, contrasting it with other SaaS companies that are decelerating because they are not focused on adding value to inference tokens.

“You can see Palunteer does this where they basically take your enterprise data sitting in a bunch of different systems. They contextualize it into an ontology and then they make it very easy to build agents on top of that that basically combine your business data with LLMs to deliver business productivity and they charge based on that and their business is growing in the US 100% plus yearon-year and accelerating.” — ▶ 10:00

Cathie Wood highlights Palantir's exceptional 142% US commercial revenue growth, far exceeding their own 55% CAGR assumption. She suggests that if the company could sustain even 70-80% growth, it would be a 'screaming buy,' indicating strong belief in its long-term potential as a key player in the AI revolution.

“But you know if it were able to sustain you know 70 80% which is higher than what we have in our model um that stock would be a screaming buy today.” — ▶ 30:00

ARK Invest views Palantir as the 'poster child' for success in the platform-as-a-service segment of the tech stack, which is benefiting from the AI boom. They believe investors need to be on the 'right side of change' as AI disrupts legacy software, and Palantir represents a key player in this shift.

“The real success story of course has been in the platform as a service part of the tech stack and that of course the poster child there is Palunteer.” — ▶ 7:00

The speaker suggests that Palantir's recent stock performance, which many find hard to justify, is due to its strong position in the platform layer of enterprise software, which is expected to take significant market share. They believe the company will grow into its current valuation due to the magnitude of growth ahead, driven by the shift towards AI platforms.

“I think that's one reason why a company like Palantir has just taken off in a way that most people wouldn't expect and and and many cannot understand the valuation at which it's selling right now but they also haven't understood and and probably still don't expect the rate of growth the magnitude of growth ahead that that that will grow into that valuation.” — ▶ 30:00

Cathie Wood highlights Palantir's recent government contract, suggesting it's a sign of AI's deeper integration into the government ecosystem. She believes Palantir's software, which sits on top of legacy systems, will drive efficiencies as AI and automation take over more tasks, making it a key player in government modernization.

“what's great about Palantir is initially its software sits on top of all of the Legacy software all of the different kinds of Legacy software in any any company or or in any government and then with time as AI uh and automation takes over more and more tasks it really or they usurp the role of some of the Legacy software uh as they are being built on top of palente um uh really platform so uh I think that's very exciting in terms of getting the efficiencies going” — ▶ 30:00

ARK Invest believes Palantir is uniquely positioned to capitalize on the generative AI boom due to its long-standing focus on data integration and its ontological approach to enterprise data. This foundation allows for rapid deployment of AI solutions, enabling customers to achieve significant ROI by operationalizing AI effectively. The company's ability to integrate human thought, algorithmic reasoning, and LLMs into its platform provides a significant competitive advantage in capturing the market.

“I think what we feel the reason we are so excited is we feel like we have the elegant integration between the human thought the llm and the alic reasoning that's required to actually capture the market.” — ▶ 1:00:00

The speaker expresses skepticism about MicroStrategy's structure as a 'digital asset treasury company,' suggesting it's a 'wonky' and potentially temporary solution for accessing crypto assets. They imply that the building leverage in such companies could lead to a 'catastrophic unwind' in the market, though they don't explicitly predict bankruptcy for MicroStrategy.

“I'm not going to make a claim that Micro Strategy is gonna bankrupt here, but I think that we've all recognized that that structure seems a little wonky.” — ▶ 24:40

Tom Lee praises Michael Saylor's MicroStrategy for its pioneering role as a Bitcoin treasury, noting its significant shareholder returns due to its Bitcoin holdings. He projects MicroStrategy could become one of the largest companies in America if Bitcoin reaches $2 million, making it a $2 trillion company based on its Bitcoin holdings.

“I believe MicroStrategy will be one of the largest companies in America because of its Bitcoin holdings. So it's about a 100 billion market cap today, 15 billion of debt, so 115. If Bitcoin goes to 2 million, then that's going to be a $2 trillion company.” — ▶ 49:00

The speaker believes Salesforce will remain relevant, arguing that businesses will still need CRMs and Salesforce will likely have more customers in five years. However, they question its ability to capture the multi-trillion dollar AI TAM compared to new AI-native companies, citing a 15-year payback period based on its growth rate and free cash flow margin.

“I think I think it's not going to make sense for a business to build their own CRM. Like that's kind of obvious. So Salesforce is still going to be around. I would bet that in five years they have more customers than they have today. But if I had to bet on who's going to capture more of a multi-trillion dollar AI TAM, I'm going to bet on these new AI native companies over most or all of the traditional SAS companies.” — ▶ 15:00

The speaker suggests Rivian is positioning itself for acquisition, specifically by Google for its Waymo autonomous driving unit. This implies a lack of confidence in Rivian's long-term viability as an independent entity, viewing it as 'crying out' for an acquisition to enter the automotive manufacturing business. The comparison to Blue Origin as the 'Rivian of reusable rocket manufacturers' further underscores a skeptical view of its standalone potential.

“Rivian is clearly setting itself up to be acquired by Google. That's my view.” — ▶ 17:00

The speaker highlights Tether's fractional reserve banking model, where it holds cash-like entities and higher-yielding assets like Bitcoin and gold, which have different liquidity profiles than its deposits. This structure means Tether is not fully reserved in a way that could instantly liquidate everything, posing a risk if there's a mass exodus, similar to how money market mutual funds operate with a riskier balance sheet.

“Tether is holding basically doing fractional reserve banking, right? They have a bunch of cash on their balance sheet and cashlike entities and then they have the top part of their balance sheet generating a lot more yield with Bitcoin and gold and other things that effectively induce higher returns.” — ▶ 34:50

The speaker highlights USDT's utility in emerging markets as a stable alternative to volatile local currencies, enabling efficient transactions and acting as a savings account. They also note its growing adoption by commodity traders for streamlining deals, and its potential to become a major competitor to traditional fiat currencies due to its stability and efficiency.

“What this stable coin is is it is the monetary system and then you can have all sorts of financial institutions growing out of it using it as collateral.” — ▶ 50:00

Tether is highlighted for its record-breaking transaction volume and significant net income, demonstrating high capital efficiency compared to traditional financial institutions. ARK Invest believes stablecoins, including Tether, will continue to grow substantially, potentially reaching $1.5 trillion in supply, making them major holders of US treasury debt and fulfilling demand for US-denominated savings in emerging markets.

“I think tether has caught every institution um financial institution by surprise this year they've recorded um 5.3 billion dollars of net income in the first six months of 2024 and they just hit 13 billion for the full uh the full calendar year of 2024 to put this into perspective tether is in the same order of magnitude a lot of the biggest banks that we have uh today” — ▶ 15:50

The speaker is excited about Tether's new Hadrian platform for tokenizing real-world assets (RWA). They believe this will significantly grow the crypto industry by bringing exogenous assets onto the blockchain, expanding the total addressable market, and increasing the utility of stablecoins. The new regulatory environment also makes this more feasible now.

“I think it's a it's a big deal uh Sam because um you're right like we've had a tents uh with the uh the tokenization of rwa in the past which you know haven't been really successful” — ▶ 2:00

The company has undergone significant internal restructuring and is now rapidly developing new AI-powered products like Managerbot and Moneybot, indicating a renewed focus on innovation and product velocity. This, combined with their strong distribution through Square and Cash App, positions them well to leverage AI for both merchant and consumer financial services, potentially unlocking new use cases and deepening product integration.

“So, very excited about what they're doing. Um, we've always been excited thinking about, you know, this company specifically when you have on the Square side of the business this merchant terminal. Um, but then when you loop in Cap Cash App, which there were some crazy stats there.” — ▶ 30:00

The analyst considers Block a leader in the digital wallet space, noting its comprehensive offerings including tax filing, checking, savings, crypto, and a brokerage account within Cash App. However, they suggest Robinhood's starting point in brokerage gives it a long-term advantage, as Block primarily targets lower-income households and the unbanked, a different market segment.

“Block has has done a tremendous job though. You know they have their tax um uh filing system, they have checking, they have savings, they offer crypto, they have a brokerage account. So they do have all of that in Cash App.” — ▶ 13:40

Cathie Wood holds Block (Cash App) in her firm's portfolios, citing its efforts around Bitcoin and its potential to become a dominant digital wallet or 'everything app.' She highlights its origin in lower-income areas and its potential for continued proliferation.

“we hold uh Robin Hood uh cash I mean a block for cash app and everything Jack and team are doing around Bitcoin” — ▶ 24:00

ARK Invest believes Block is a strong contender in the digital wallet space, leveraging its Square and Cash App ecosystems to facilitate closed-loop payments. They project significant growth in net payment processing revenues and merchant banking, driven by the displacement of traditional intermediaries and the monetization of employee digital wallets.

“in total we think block toast and Shopify can scale their monetization of their Merchants employee base from approximately $100 million today to a $25 billion opportunity in 2030 at an annual growth rate of 123%” — ▶ 10:00

The analyst believes Block is a potential winner in the US digital wallet race, citing Jack Dorsey's renewed commitment to the Square division and explicit plans for cross-team collaboration between Cash App and Square. This collaboration is expected to unlock product and cost synergies, aligning with their thesis on vertical software plays capturing value in payment ecosystems.

“Jack dorsey's comments that reaffirmed I think significant investor confidence in Block as a potential winner in the US digital wallet race.” — ▶ 00:30

The speaker argues that Alphabet (Google) is in a strong position in the AI market due to its existing revenue streams from advertising, which provide significant cash flow. They believe Google can leverage its ecosystem (Chrome, GCP) and bundle AI services like Gemini to maintain competitive pricing and attract users, despite potential short-term margin pressures, ultimately leading to a strong long-term position.

“I think what's going to happen over the course of the next year or two, OpenAI is going to need to scale their monetization efforts... And I think what's going to happen over the course of the next year or two, OpenAI is going to need to scale their monetization efforts.” — ▶ 7:00

Cathie Wood indicates some concern regarding Alphabet, similar to Apple, believing it will be affected by market disruption. She implies it's not among the 'true disruptors' that will see significant market cap appreciation.

“somewhat uh alphabet as well but all of them have uh will be touched in some way uh by dis disruption to the traditional world order.” — ▶ 30:05

The analyst suggests Alphabet is most at risk among the 'Mag 6' due to potential threats to its ad business from AI innovation. While acknowledging their vertical integration with TPUs and recent progress in AI, the core search business faces disruption. The analyst notes that while Google's ecosystem is sticky, the fundamental economics of internet-facing services are being undermined, posing a challenge to their existing business model.

“I think the most the the the company with the most at risk is alphabet like I think you've probably won me over Brett a little more than I'd like to admit on you know their ad business being you know potentially under threat because of the Innovation happening here” — ▶ 41:40

ARK Invest is bullish on Robinhood, citing its 'playbook' of disrupting markets with competitive pricing and then cross-selling various financial products. The strategy of attracting younger investors through commission-free trading and then expanding into active trading, crypto, banking, lending, wealth management, and social platforms is seen as a strong moat. The firm believes that owning the brokerage relationship allows Robinhood to capture a significant portion of future generational wealth transfers, transforming it into a comprehensive financial super app.

“If you own the brokerage, you own the rest of the financial landscape that surrounds an individual.” — ▶ 16:00

Robinhood is identified as a company successfully disrupting traditional brokerages with a superior UI and attracting a new generation of investors. The analyst views Robinhood as part of a broader trend where wealth is transferring to digitally native platforms, posing a competitive threat to legacy financial institutions.

“Robin Hood on the brokerage side clearly taking share from these legacy financial institutions that have trillions under custody.” — ▶ 26:00

ARK Invest believes Robinhood is a strong buy due to its innovative approach to social trading, which includes real-time verified profit and loss tracking, and its potential to unlock new revenue streams through advertising. They view Robinhood as a tech company disrupting financial services, similar to Tesla in the auto industry, and highlight its strong product velocity and ownership of the millennial and Gen Z financial demographic.

“I think this unlocks new revenue line items for for Robin Hood itself.” — ▶ 10:00

ARK Invest expresses high conviction in Robinhood, citing its visionary leadership, product velocity, and strategic positioning to capture the generational wealth transfer. They believe Robinhood's focus on making financial services feel like a consumer app, its expansion into digital banking, tokenization, and AI-driven tools, will allow it to become a dominant financial super app, especially for younger generations. The company's ability to attract and retain sticky assets through its brokerage platform is seen as a significant moat against competitors.

“I think everything they're doing is to position the company to be ahead and to be pushing the boundaries of market dynamics, of brokerage space, of tokenization we get into, of the banking side, right?” — ▶ 3:00

The analyst suggests that Robinhood's partnership with Kalshi for prediction markets is beneficial, driving new customer acquisition and increased engagement. They highlight Robinhood's strategy of lowering costs and increasing product velocity, which has led to significant volume in prediction markets, especially in states without legalized sports betting. This expansion broadens access for their large user base.

“it's probably not good for Robin Hood. makes going to the app even better and much better experience. They're probably getting some new customers as well just with this or people on the app longer or checking in more often.” — ▶ 10:00

The analyst believes Robinhood is well-positioned for long-term growth due to its transformation into a full-fledged digital wallet, offering competitive services like a $5/month subscription, a banking app with checking/savings, and a robo-advisory service with a flat 25 basis point fee. They argue Robinhood's brokerage-first approach gives it a competitive advantage in customer asset stickiness and that its low-cost, mobile-first ethos is disrupting the financial industry.

“I think Robin Hood's ethos as a company is, you know, that quote, right? Like they Robin Hoodify, they're being lowcost provider. lowcost provider with like the best UI in the business and mobile first ethos and DNA which is again really unmatched.” — ▶ 10:00

Cathie Wood includes Robinhood in her firm's portfolios as a proxy for crypto exposure when direct Bitcoin investment is restricted. She notes its strong user interface (UI) as a key differentiator that appeals to consumers in the evolving digital wallet space.

“we hold uh Robin Hood uh cash I mean a block for cash app and everything Jack and team are doing around Bitcoin and even a little Sofi we're looking for the digital wallet” — ▶ 24:00

The analyst believes OpenAI will be a strong investment upon its IPO, likely in 2027, due to its immense pricing power from increasing AI chatbot productivity and user adoption. They project a 50x revenue potential from a 5x increase in users and a 10x increase in pricing power over two years, leading to strong strategic leverage and high return on invested capital for its compute infrastructure.

“I think that's the underlying pricing power in kind of the system as a whole where it could go, you know, and so then I when you're in a situation where you have a ton of pricing power, it gives you a ton of strategic leverage.” — ▶ 30:00

ARK Invest believes OpenAI, as a leading foundation model provider, is well-positioned to capture significant value in the AI market, which they project to be worth $15-20 trillion by 2030. They see multiple valuation approaches, including a $150 billion post-money valuation as 'good money' and comparable price-to-sales multiples to public SaaS companies. The thesis is contingent on continued AI acceleration and performance improvements.

“open AI as as you know a leading candidate to occupy that spot at 150 billion is good money in uh in terms of value” — ▶ 2:00

The analysts discuss OpenAI's potential to become a dominant front-end experience for digital lives due to its highly performant models and the virtuous cycle of user data. They believe OpenAI's models will continue to improve rapidly, allowing them to access and use resources on behalf of users, potentially disrupting existing ecosystems.

“I think that there's a strong possibility that actually performance dispersion is higher on a go forward ma basis not narrower now that doesn't mean that open AI necessarily wins it I think that there's plenty of evidence that performance is going to continue to improve but like they could go down one track and anthropic goes down another traic track and sudden the anthropic model is a lot better and we wouldn't know the reason why.” — ▶ 25:00

The discussion suggests that while new agentic commerce platforms like OpenAI's integration with Shopify and Etsy will increase competition, Amazon's structural advantages in pricing, inventory depth, and speed of delivery will likely allow it to maintain or even strengthen its position. The new abstraction layer might make the e-commerce landscape more competitive at the margin, but Amazon's established physical infrastructure and bottom-of-funnel dominance are seen as protective factors.

“I think the big the big marketplaces actually are structurally advantaged here. One, because you know, as much as this is a software story, the physical infrastructure side of this is why you can compete on those three pillars.” — ▶ 12:50

Vannelli highlights Amazon as an example of an innovative company that is currently trading at an attractive valuation. He states that based on their proprietary adjusted cash flow metrics, Amazon is trading at nine times adjusted cash flow, which he considers to be absolutely cheap, not just relatively cheap.

“when I look at like an Amazon right in our proprietary work Amazon goes for nine times adjusted cash flow right now I mean that's just not cheap relatively that's that's cheap absolutely” — ▶ 39:20

Similar to Amazon, Walmart is expected to benefit from its structural advantages in pricing, inventory depth, and delivery speed in the evolving agentic commerce landscape. Despite new competition from AI-driven purchasing agents, Walmart's extensive physical infrastructure and distribution network are seen as key differentiators that will allow it to remain competitive and potentially consolidate market share.

“Amazon has more products than you know it's only matched really by Walmart. So are these two now going to come up on both of pricing? Yes. Because they've, you know, structurally built in advantages on pricing so that they can deliver and service these this this inventory at the lowest cost.” — ▶ 12:00

The analysis suggests that Costco, along with Amazon and Walmart, will be among the long-term winners in the e-commerce space as agentic commerce develops. These large retailers are expected to benefit from a 'steepening of the power curve,' where their existing advantages in pricing, inventory, and logistics allow them to capture a larger share of the market, despite increased competition at the margins.

“It's like you got Walmart, you've got Amazon, you've got Costco, and it's like they're just going to keep taking share slowly.” — ▶ 17:50

Wood notes gold's recent strength, attributing it to a 'debasement trade' and a hedge against geopolitical risks and perceived negative sentiment towards the US. She suggests it acts as an insurance policy for investors concerned about global uncertainties.

“The gold price has been very strong and it has been many people are calling it the debasement trade. Both gold and Bitcoin have been strong on balance. Gold recently much stronger than Bitcoin. So there there's definitely fear of something out there.” — ▶ 36:00

Coinbase is seen as a significant disruptor to traditional banking by offering compelling yield products on USDC, directly competing with checking and savings accounts. The analyst argues that Coinbase's transparency, public trading status, and focus on building a franchise make it a more legitimate threat than previous crypto yield offerings, attracting wealth from digitally native generations.

“Coinbase much more coming for core banking business now.” — ▶ 20:00

The analyst acknowledges Coinbase as a leader in the crypto space, excelling in both retail and institutional offerings. While recognizing its strength in crypto, they note it lacks the equity offerings of Robinhood, suggesting a competitive but distinct market position. They cover Coinbase and own it in various funds, indicating a neutral to positive stance.

“But you have a company like Coinbase that was bred, you know, and born in the crypto space. They obviously I think it's fair to say understand it a bit better than a company like a Robin Hood.” — ▶ 17:00

The speaker argues that Coinbase is strategically positioning itself to be the 'front door' to the emerging on-chain economy. By building platforms like Base and products like Coinbase Wallet and USDC, Coinbase aims to vertically integrate and capture value from the anticipated 'Cambrian explosion' of on-chain applications. This strategy is expected to make Coinbase incredibly lucrative by owning the user interface for a vast array of future on-chain activities.

“if we can build a platform that can support those thousands of apps millions of apps to emerge and then we can work really closely with coin coinbase to make it so all of those apps work best on coinbase and that the default when people are going to you know use their app whatever it is is coinbase that's going to be incredibly lucrative because we're going to own like coinbase is going to own the eyeballs” — ▶ 30:50

Cathie Wood mentions holding Coinbase in portfolios where direct Bitcoin exposure is not possible. She sees it as a key player in the crypto ecosystem, representing the 'crypto angle' in the search for the next digital wallet or 'everything app' that will disrupt traditional financial services.

“in portfolios where we cannot hold um AR KB or uh you know hold uh that's really the only instrument or gbtc um uh we hold coinbase” — ▶ 24:00

The analyst suggests that DraftKings faces a dilemma due to the rise of prediction markets like Kalshi, which operate in a 'gray market' in states where sports betting is not legalized. DraftKings must be cautious not to upset state regulators by entering these gray markets, as it could jeopardize their ability to obtain licenses for full sportsbooks in the future, which are currently a more profitable business model.

“So, this is this is where I think it it becomes an interesting question if you are DraftKings because you're seeing the market move and uh you're seeing that there is demand from consumers to have these uh access to these prediction markets.” — ▶ 10:20

ARK identifies DraftKings as a leader in the rapidly growing mobile sports betting sector. They emphasize the importance of vertically integrated tech stacks, which they believe gives companies like DraftKings a significant advantage over competitors that outsource third-party solutions. The sector saw over $100 billion in gross betting volume in 2023 and is expected to continue growing as more states legalize.

“when we look at what separates companies operating in the mobile sports betting space we we focus on one key factor and that's vertically integrated Tech staxs as you can see on the chart on the right we are focused and looking at companies like DraftKings and FanDuel from a technology perspective we believe that their ability to focus on the backend Tech has given them a massive advantage.” — ▶ Watch clip

The speaker, a co-founder of DraftKings, expresses strong long-term conviction in the company's web3 strategy, particularly with its 'Rainmakers' NFT-driven fantasy sports product. He believes the product merges the appeal of fantasy sports with digital ownership and utility, creating a powerful engine for engagement and growth. The company's focus on building a sustainable, long-term business model, rather than short-term speculation, is highlighted as a key strength, especially in a bearish market.

“Good Times bad times whatever like the long-term conviction and what DraftKings is doing I think is uh it's always something that we've really valued and as a founder of course like Jason Paul and I talk all the time about you know there's endless amounts of people that like will jump in at the best of times and I thought our kids always been a great supporter and in all times you know of our company and I hope that that yields really great rewards in the future and yeah thanks for having me” — ▶ 50:00

ARK Invest highlights CRISPR Therapeutics as a key example of a company developing gene-editing therapies for common conditions like cardiovascular disease, moving beyond rare diseases. They note encouraging proof-of-concept phase one data and anticipate further positive developments, driven by the targeting of genes important in liver metabolism.

“I can highlight one key example actually that we're focused around and that's crisper therapeutics. So they're developing gene editing therapies that can address just this right moving from not just you know success in rare diseases but also very common conditions such as cardiovascular disease by targeting genes that play a very important role in liver metabolism.” — ▶ 12:00

ARK Invest is bullish on CRISPR Therapeutics due to its focus on curing type 1 and type 2 diabetes, which could be a 'category killer' cure. They believe that cures, despite traditional market skepticism, should be valued significantly higher than chronic disease treatments, driving substantial returns for companies embracing these new technologies.

“in fact crisper Therapeutics is focused on type one diabetes and type two diabetes which would be the cat category killer uh for this particular cure” — ▶ 13:50

Wood highlights CRISPR Therapeutics as a company already curing diseases like sickle cell and beta thalassemia with approved drugs in the US, UK, and Europe. She argues that the market misunderstands the transformative potential of such innovation in healthcare, especially with AI applications, and expects a shift in perception.

“CRISPR Therapeutics is a company that's whose drugs have been approved in both US and the UK and Europe as a matter of fact those three areas curing CLE cell disease and beta Thalia.” — ▶ 09:00

ARK Invest highlights CRISPR Therapeutics as another undervalued gene-editing company, with its therapies for sickle cell disease and beta-thalassemia already approved and generating revenue. They believe the market is underestimating the revenue potential and transformative impact of these curative treatments, which offer a fundamentally different and more valuable revenue curve compared to traditional drugs.

“CRISPR Therapeutics which you did mention early on sickle cell disease beta thymia, these therapies have been approved in the US, UK and Europe and the patients are entering the trial or or or being dosed now I should say, so we're going to see real revenue recognition when CRISPR reports.” — ▶ 24:40

ARK Invest highlights CRISPR Therapeutics' recent FDA approval for Casgevy, a gene-editing therapy for sickle cell disease, as a significant breakthrough. They believe this marks the beginning of a new era in gene editing, with potential for future applications in larger indications like diabetes and cardiovascular diseases, despite the long clinical trial process.

“the first ever Gene editing approval was uh given to crisper Therapeutics and vertex Pharmaceuticals for a uh medicine called kevi” — ▶ 00:38

Cathie Wood points to Crispr Therapeutics as a company working on gene editing to cure chronic diseases like diabetes. She emphasizes the potential for outright cures in healthcare through the convergence of DNA sequencing, AI, and gene editing, which could solve major budget issues related to chronic conditions.

“We're seeing companies like Crispr Therapeutics and Vertex working with gene editing to cure diabetes which is from a chronic set of conditions one of the biggest budget busters of all.” — ▶ 22:40

The analyst implies that Uber's business model is vulnerable to disruption from autonomous vehicle services like Waymo and potentially Tesla's robo-taxi. They suggest that if autonomous services offer a superior product at a lower price, traditional ride-sharing companies will struggle to compete, making their categories look like a 'joke'.

“Whimo even with its relatively small fleet in the area where it operates has already surpassed Lyft and if it the trend continues within the next 12 months will do more rides than Uber.” — ▶ 12:50

The analyst implies that Lyft's business model is vulnerable to disruption from autonomous vehicle services like Waymo and potentially Tesla's robo-taxi. They suggest that if autonomous services offer a superior product at a lower price, traditional ride-sharing companies will struggle to compete, making their categories look like a 'joke'.

“Who's going to acquire Lyft? Open question. We'll we'll we'll see. We'll see what happens.” — ▶ 13:40

The analyst believes Google is successfully integrating generative AI across its entire ecosystem, including Android, Chrome, and Search, and is also developing new AI-powered wearables. They argue Google has moved quickly and effectively to fend off competition, demonstrating a strong understanding of the market's direction.

“I thought what they presented last week was as good as it could have been given where they were two years ago, even a year ago, right? like they've moved the puck so fast in the right direction in my opinion that I think you have to give them their flowers.” — ▶ 10:00

The analyst suggests avoiding Google due to the increasing competition in the search market from AI-powered alternatives like Perplexity and OpenAI. While Google is attempting to adapt, the fundamental shift in consumer behavior towards AI-summarized answers rather than link-based search could erode Google's highly profitable search business, leading to potential long-term volatility and internal organizational challenges.

“Google is successfully positioning themselves as battling off these search competitors while they're losing a larger war that they're not necessarily even directly able to focus on within the context of their search business.” — ▶ 26:00

Base, an Ethereum Layer 2 network incubated by Coinbase, is highlighted for its rapid growth in active users, transactions, and revenue. ARK Invest believes Base will continue to attract more users and developers, solidifying its position as a leading scaling solution for Ethereum.

“bass is the layer 2 Network incubated and designed by coinbase De centralized exchange and they have you know by metrics if we look at active users number of transactions and revenue generated base has really taken all the oxygen out of the room and accounts for more than 50% in most of these very important metrics” — ▶ 18:50

Jesse Pollak, the creator of Base, believes that Base, as a Layer 2 solution, is poised to become a market leader due to its focus on trust, ease of use for developers and users, and the strong culture it has fostered. He highlights its rapid growth in DEX volume, exchange users, and daily users, attributing this success to its differentiation in these areas rather than solely on technology. He projects Base could support 100 million daily users within 18 months and potentially billions in the long term by increasing its gas target 400x over 400 days.

“Bas launched uh about nine months ago at the beginning of August today Bas uh is has the largest uh volume Dex volume is l2s the the most uh exchange users uh the most Builders Far and Away uh the most daily users” — ▶ 26:50

The speaker highlights Recursion as a company making significant strides in drug discovery, particularly in leveraging AI. They are achieving milestones that are surprising to many, indicating strong progress and potential for future growth in the healthcare space.

“in the public markets there are also companies recursion absi we featured uh prominently and you know they're doing amazing things and uh you know hitting Milestones I think that are surprising to people” — ▶ 16:50

The analyst is bullish on Intellia, citing its gene-editing technology that has shown promising Phase 2 results for hereditary angioedema, effectively curing 70-80% of patients with a single injection. They argue that Wall Street undervalues 'cures' because they don't generate recurring revenue, but the high upfront pricing based on lifetime cost avoidance and the ability to capture the entire prevalent patient population make these assets significantly more valuable than traditional chronic treatments.

“Intellia has um a gene editing based technology they just reported phase two results it seems to for 80% or 70 to 80% of patients provide a cure for uh disease called the hereditary angiodema.” — ▶ 30:00

ARK Invest believes Intellia is significantly undervalued by the market, which misunderstands the profound impact and value of its gene-editing cure for hereditary angioedema (HAE). They argue that a single cure for HAE could generate $21 billion in market value, far exceeding the company's current enterprise value, and that the revenue profile of cures is fundamentally different and more valuable than traditional treatments.

“If you look at the valuation of Intellia today, its Enterprise Value today is $654 million. Its market cap is $1.5 billion but it has almost a billion in cash. What Brett is going to explain in terms of the value we see coming out of a drug that cures Hae as it is known, will astound you.” — ▶ 14:00

ARK Invest highlights Absci as a leader in AI-driven drug discovery, spearheading a historic change in R&D efficiency by compressing timelines and reducing costs. They believe Absci has the potential to become a scaled biotech platform company due to its ability to prosecute programs through to approval and its differentiated approach to both best-in-class and novel biology drug development. The company's active learning loop, combining wet lab data generation with AI models, allows for rapid iteration and increased accuracy in designing antibodies.

“Absci is just really one of the examples where you can very tangibly stick numbers on how much better it is than it was before and you don't need to tip the scales much in favor of efficiency to really have a massive leveraged outcome in the number of drugs approved per billion dollars or what have you so it's very very exciting.” — ▶ 7:00

The analyst includes Danaher among larger companies that are very active in the proteomics space, offering different methods to analyze proteins. This sector is identified as having substantial growth potential, driven by the critical need for better tools to understand biology and develop effective therapies, despite current underfunding.

“in addition to these ones we have much bigger companies such as thermop Fisher daker who are also very very active in this space and have different methods to kind of read proteum” — ▶ 10:50

The analyst mentions Thermo Fisher as a larger company actively involved in proteomics with various methods to read the proteome. The broader proteomics space is highlighted as a significant growth area, currently underfunded but essential for future advancements in biology and drug development.

“in addition to these ones we have much bigger companies such as thermop Fisher daker who are also very very active in this space and have different methods to kind of read proteum” — ▶ 10:50

The analyst points to 908 Devices for its innovation in miniaturizing mass spectrometry, a key method for studying proteins. This advancement is critical for making proteomics more accessible and efficient, a field that is currently underfunded but holds immense potential for biological understanding and therapeutic development.

“then we have companies such 908 which basically manag to miniaturize mass spec which is one of the main methods to actually study the proteins” — ▶ 10:35

Cathie Wood highlights 908 Devices for its mobile mass spectrometry machine, which enables in-field detection of hazards like bioweapons and pollutants. This showcases the company's innovative solutions for critical real-world problems.

“there's a company called 908 Devices which is the only mobile mass spec machine broadly that that enables uh in the field detection of hazards bio weapons pollutants uh and uh contaminants” — ▶ 34:40

ARK Invest expresses caution regarding ARM, despite its current success in mobile, due to potential future disruption from open-source alternatives like RISC-V. While ARM has a strong licensing business, its established model might hinder its ability to adapt to new market dynamics, such as the rise of chiplets or the demand for greater customer control over IP. The ease of transitioning to RISC-V could erode ARM's market share, particularly in areas where it currently holds near-monopoly status.

“if arms not careful careful they're going to pay for all of the porting and conversion off of other platforms to them just to have another risk architecture called risk 5 wson behind them with far lower switching costs” — ▶ 1:00:00

ARK Invest highlights the Ton Network's potential for significant growth due to its renewed partnership with Telegram, which offers massive distribution to over a billion users. They anticipate increased activity, total value locked (TVL), and other metrics to skyrocket, especially with the recent support for USDT stablecoin, enabling micro-payments and DeFi primitives.

“I think for for crypto in general um telegram is like a very Crypton native uh messaging app even before these announcement if you work in crypto you're an analyst or VC um a business you work in business development at some cry crypto project or even in marketing like you have to interact with with the with telegram uh most of the activity for crypto is either on Twitter or telegram so it's a very Crypton native uh app uh and so I think the the partnership is really interesting we've never seen that size of distri you know of distribution” — ▶ 4:00

ARK Invest views Toast as a strong candidate for growth in the digital wallet ecosystem, with its My Toast and Toast Takeout apps serving as early examples of consumer digital wallets. They expect significant revenue expansion through closed-loop payments, merchant banking, and the monetization of employee digital wallets by disintermediating traditional payment systems.

“in total we think block toast and Shopify can scale their monetization of their Merchants employee base from approximately $100 million today to a $25 billion opportunity in 2030 at an annual growth rate of 123%” — ▶ 10:00

ARK Invest identifies Shopify as a key player in the closed-loop payment thesis, with its Shop app evolving into a consumer digital wallet. They anticipate substantial growth in payment processing and merchant banking revenues by cutting out legacy intermediaries and expanding into employee digital wallet monetization.

“in total we think block toast and Shopify can scale their monetization of their Merchants employee base from approximately $100 million today to a $25 billion opportunity in 2030 at an annual growth rate of 123%” — ▶ 10:00

ARK believes Shopify is a key enabler of the social commerce movement, which they project to be a $5 trillion opportunity by 2030. Shopify provides an omnichannel solution that helps merchants sell directly across various social platforms like WhatsApp, Snapchat, Instagram, TikTok, and Pinterest, thereby catalyzing significant spend.

“Shopify is an omni Channel solution helping Merchants sell directly to any one of these platforms we just mentioned all of these social platforms are opening up avenues for merchants to sell and this is what defines the social commerce movement.” — ▶ Watch clip

The analyst suggests Roblox is a compelling investment as the gaming industry enters its 'YouTube moment,' driven by user-generated content (UGC). Roblox, alongside platforms like Fortnite, is enabling a creator economy where the cost to create games is decreasing, leading to a massive increase in available experiences and the ability to cater to niche audiences. This model allows for rapid content creation and monetization of strong IP, positioning Roblox for significant growth.

“Roblox and fortnites of the world which are the YouTube platforms that are growing and building and that's you know where a lot of the attention is starting to be uh is is starting to shift too.” — ▶ 25:50

Roblox's strategic move to segment its platform for a 17+ demographic, allowing for more mature content, is seen as a smart way to retain and grow its user base as they age. The company's data shows a significant and growing portion of its daily active users are over 13, with the 17-24 demographic being the fastest growing. This initiative incentivizes developers to create more diverse content, potentially expanding Roblox's market beyond its traditional perception as a children's platform.

“I think Roblox is doing a great job of being able to capture the attention as users age up and by segmenting out and now kind of creating an incentive for developers to go after this Market you're you know again increasing the likelihood that users will stay with the platform as they age up” — ▶ 17:40

Epic Games, particularly through Fortnite, is pioneering a shift in IP rights within gaming by partnering with brands like Lego and potentially Disney. This initiative allows individual creators to use established IP within user-generated content, fostering a creator economy and expanding the reach of both the platform and the brands. This strategy is seen as a key driver for growth in the user-generated content space, which is becoming a dominant force in the entertainment sector.

“This is really all being pioneer by epic so this is a part of their creator economy 2.0 initiative and it's about how do we lend uh you know how do we how do we help creators grow um from a monetization perspective and how do we bring more Brands into the ecosystem.” — ▶ 22:40

Sofi has seen high interest and nice flow into spot Bitcoin ETFs from its members, especially after discontinuing direct crypto purchases. The CEO views these ETFs as a better, more diversified, and safer way for novice investors to gain exposure to cryptocurrency, satisfying their desire for this evolving technology in their portfolio.

“I'd say there's definitely been a high level of interest, it's been, you know, a top searched product. We've seen nice flow into that asset class. I think it's a better way for, you know, our investors are generally beginning investors or Navas investors not sophisticated traders in in most cases and so it's a it's a more Diversified way a better way for our members to be able to have exposure to cryptocurrency.” — ▶ 22:50

The speaker believes Bitcoin ETFs offer a safe, cheap, and easy access point to Bitcoin, making it accessible to a broader investor base, especially those over 35 who may not be comfortable with self-custody or complex exchanges. The competition among 11 newly launched ETFs has driven significant volume and assets, which acts as strong marketing and builds trust. The category is expected to grow to $100 billion in assets within three to four years, comparable to gold ETFs, and will likely see further product innovation like leveraged or inverse Bitcoin ETFs.

“an ETF I thought would be a safe cheap easy access point and that's what I was more bullish on... I really think you could see this getting to that hundred billion dollar Mark within three or four years.” — ▶ 48:00

The CEO believes Sofi is positioned to be a 'winner take most' in the fintech space, similar to Amazon as a one-stop shop for consumer financial products. They are vertically integrated, owning their technology, which also serves as a revenue stream. The company's broad-based offering diversifies its business, allowing it to adapt to different market environments, and its unique product design, especially the direct deposit requirement for high-yield accounts, creates sticky customer relationships and strong deposit growth.

“I do think there will be several winners that take most. I think Sofi occupies the space similar to Amazon in that we're one-stop shop for consumer financial products.” — ▶ 16:00

ARK Invest notes Vertex Pharmaceuticals' joint FDA approval with CRISPR Therapeutics for Casgevy, a gene-editing therapy for sickle cell disease. They view this as a groundbreaking development in gene editing, suggesting future growth potential as the technology expands to treat more widespread conditions.

“the first ever Gene editing approval was uh given to crisper Therapeutics and vertex Pharmaceuticals for a uh medicine called kevi” — ▶ 00:38

Cathie Wood highlights Vertex as a company utilizing gene editing to develop cures for chronic diseases such as diabetes. She believes that advancements in gene editing, combined with DNA sequencing and AI, hold the promise of outright cures, addressing significant healthcare costs.

“We're seeing companies like Crispr Therapeutics and Vertex working with gene editing to cure diabetes which is from a chronic set of conditions one of the biggest budget busters of all.” — ▶ 22:40

ARK Invest sees Ginkgo Bioworks as the future of manufacturing, leveraging biology to engineer cells for various applications from industrial bio-manufacturing to drug production. The company's unique integration of AI (dry lab) with highly automated wet labs (Foundry) allows for rapid, closed-loop experimentation and design, significantly accelerating R&D and advancing fundamental knowledge. Its proprietary code base, vastly larger than public sources, provides a strong competitive edge.

“I think one of the greatest opportunities for Geno right now is around generative AI how do you teach a large language model not to speak English but to speak acgs and T's.” — ▶ 0:49:00

The speaker expresses a bullish sentiment on Penn National's ESPN Bet venture, believing that ESPN's deeply ingrained brand in US sports culture, combined with Penn's two billion dollar investment in in-house technology (The Score), could allow them to capture a significant market share in the competitive sports betting landscape. They suggest that if ESPN Bet can innovate with features like real-time live betting integration during broadcasts, it could differentiate itself from competitors.

“I'm a little bit bullish on ESPN but I look like if I blow out my phone if I pull out the ESPN I'm looking at the ESPN app five times a day just blindly you know just seeing what's going on I have no idea I check espn.com every day you know there's some background Sports there's something going on ESPN for sports fans is so ingrained in our life here in the US if they can capitalize on this well just getting that Deluge of information in your face about betting it's going to be hard to pass up.” — ▶ 12:00

David Fuel expresses concern about BNB due to a multi-year descending triangle formation on its chart, with a critical support level at $210. He notes that Binance is under significant regulatory pressure from various bodies (CRTC, SEC, BOJ) and its offshore, unregulated status adds to the risk, suggesting potential for a 'gray or black swan' event.

“Now we think that this line is very important because we have touched it a lot before and it seems to be a highly defended level for Price action and BMB and given all the regulatory pressure binance is is under right now from the crtc SEC boj uh we want to keep an eye on it.” — ▶ 9:00

The speaker views the recent court ruling in the SEC vs. Ripple case as a net positive for XRP and the broader crypto ecosystem. Although the ruling is not a binding precedent, it questions the SEC's stance that most digital assets are securities, leading to major exchanges relisting XRP. This regulatory clarity is seen as beneficial for the asset's future.

“if Ripple is not you know clearly a security then the 13 Securities whether it's a Solana an Ave a cardano they they can't possibly be Securities now again there's not very much legal basis behind this analysis it's really more of a common sense smell test where if there was any asset that was going to be deemed clearly a security it would be an asset light Ripple the fact that that is has been now put into question I think will be a tremendous uh you know positive surprise for for the crypto ecosystem” — ▶ 10:00

ARK Invest views Twilio as a strong investment in the AI software space due to its proprietary data advantage from over a trillion customer interactions, enabling it to train and fine-tune AI models. Additionally, its existing distribution advantage within the Fortune 500 allows for easier integration of new AI features, positioning it to capture significant value from AI-driven productivity gains.

“if we look at a company like twilio twilio serves over a trillion interactions between customers and companies on an annual basis that's a lot of data that they can use to train or tune models but more importantly the companies that we believe are best position have a data feedback loop which means usage of their product generates Insight that allows them to continually train the model and get better and better over time” — ▶ 10:00

Wood suggests avoiding Ford due to its stated strategy of focusing on profitable internal combustion engine vehicles while losing money on EVs. She argues that Tesla's aggressive pricing strategy will make it impossible for Ford to profitably produce EVs, and that shareholders pushing for a focus on ICE vehicles are making the wrong long-term decision, risking the company's future.

“effectively the more short-term oriented shareholders among uh along among Ford's shareholder base will be telling them stop and we think of course that's absolutely the wrong decision they have no choice but to continue to move in this direction and in the autonomous Direction otherwise they will go out of business.” — ▶ 42:50

Cathie Wood expresses concern about Ford, arguing that its stock gains from EV announcements are misplaced given that EVs are only 2-3% of sales. She suggests that if consumer preference shifts to electric vehicles, the remaining 97% of their gas-powered revenue base could become obsolete, leading to potential losses and credit issues in the auto sector.

“I look at the performance of stocks like GM and Ford uh they soared on those electric vehicle announcements think about that that's ridiculous it's only two percent of their sales and what if the other 98 or so forth are on their way out as the consumer preference shifts toward electric they have problems.” — ▶ 26:00

ARK Invest highlights Xpeng's strategy of using customer cars to collect data for its autonomous driving systems, similar to Tesla. Although these cars may not be used for robo-taxi services, the hundreds of thousands of vehicles on the road provide a significant competitive advantage through data collection.

“in China xpang is also using customer cars to collect information while they will not necessarily be the cars that are running in the robo taxi service they're still able to collect information today so they have hundreds of thousands on the road today we think that data will provide a significant competitive Advantage here” — ▶ 7:40

DraftKings chose Polygon for its blockchain-based marketplace due to its efficiency, seamless transaction capabilities, and strong relationship with the Polygon team. The speaker notes Polygon's scale and ability to handle high transaction volumes, especially during peak periods like football season, making it a suitable choice for large-scale NFT-based games. He expresses high expectations for deepening the relationship and future developments.

“I think polygon is like sneaky in terms of their scale like quite large a lot of the um kind of layer one chains that are thought of as like next in line behind ethereum are much much smaller in terms of volume than polygon but because it's Layer Two I don't think it gets quite enough credit and a lot of it came down to like efficiency in terms of things like gas fees or being able to transact pretty seamlessly and then um I would say one area that was like super important was a deep relationship with the team” — ▶ 34:00

ARK Invest believes Exact Sciences shares could reach $140 by 2027 from around $60 today, driven by continued growth in its core Cologuard and Oncotype tests, which are expected to double revenue to $4 billion, and an additional $1 billion from pipeline products. The company benefits from strong brand recognition, established physician relationships, and a high gross margin that allows for reinvestment and operational leverage, particularly in sales and marketing. They also highlight the company's strong moat due to its established platform and data advantage in cancer diagnostics.

“The headline is that we believe shares of Exact Sciences could expand uh from I believe around sixty dollars a share today to about a hundred and forty dollars per share uh by 2027 in our base case.” — ▶ 15:00

ARK Invest believes the market consensus on Exact Sciences, viewing it solely as a Cologuard play, is incorrect. Their research suggests a much broader potential for the company within the multi-ohmic space, indicating that its true value is being overlooked.

“consensus seems to dismiss exact as nothing but a colaguard play couldn't be further from the truth” — ▶ 50:00

Dr. Langer, a co-founder of Moderna, highlights the immense potential of mRNA technology beyond COVID-19, citing its speed in development and ability to treat a wide range of diseases, including personalized cancer vaccines and rare diseases. He emphasizes that the body does the work of protein production, making it a highly efficient and versatile therapeutic approach with a broad pipeline.

“I don't see much limit in terms of what messenger RNA can be used to treat if you look at what modernist pipeline is there's probably now over 30 different diseases or vaccines being studied in human clinical trials not just covet.” — ▶ 22:00

ARK Invest believes Zoom is well-positioned to capitalize on the shift to hybrid work environments and the growing AI productivity trend. They highlight Zoom's strong infrastructure, enterprise readiness, data advantage for AI model training, and independence from larger ecosystems like Microsoft as key competitive moats. The firm projects significant growth in Zoom's monetization through new offerings like Zoom United Pro and AI-powered productivity tools, such as Zoom IQ for sales teams, which they believe will substantially increase average revenue per user.

“we believe zoom is the fabric connecting global enterprise communications and the future of work” — ▶ 15:00

Cathie Wood believes Zoom is being unfairly dismissed as a 'stay-at-home stock'. She highlights its six-and-a-half-fold revenue growth since the pandemic, high gross margins in the low 70s, and its potential to be a key player in the enterprise communication space. She sees it benefiting from a 'rip and replace' cycle in enterprise communications.

“Zoom's revenue sorry is up six and a half fold uh since the beginning of the coronavirus... becoming one of the most important companies we believe in the enterprise communication space.” — ▶ 10:50

Cathie Wood views Zoom as the 'new fabric' of enterprise communications, leading the transformation of the $1.4 trillion global tech stack. She believes Zoom has the best technology and is well-positioned to win in this 'winner-take-most' market, especially with the shift to hybrid work models.

“we really do believe zoom is the new fabric which is pulling together the new communications ecosystem enterprise communications... we believe zoom it has the best technology and has the best shot at winning at winning this winner take most game.” — ▶ 32:00

The speaker highlights Garmin's innovation in aviation with its auto-land function, which significantly enhances safety and autonomy in small aircraft. This technological advancement demonstrates Garmin's leadership in developing practical and impactful solutions for the aerospace industry.

“Garmin about in 2019 announced um a auto land function in small general aviation airplanes that have Garmin cockpits in it where if you're flying single pilot and there's a passenger on board and something happens to the pilot the passenger just hits one button and that airplane will find the closest airport it will avoid mountains it'll avoid weather it'll talk on the radio it'll put the landing gear down it'll put the flaps out it'll set up for approach it'll land it'll stop the airplane and all you gotta do is shut off the engine and walk out that's incredible.” — ▶ 41:00

The speaker praises Aerovironment for its innovation, including creating the Mars helicopter and the Switchblade 600 drone used in Ukraine. The company's ability to transition from civilian applications to military use, and its public trading status, make it an interesting investment.

“Aerovironment was the company and they're publicly traded I'm not sure what their ticker is but really really cool team they also create a product called the switchblade 600 which became somewhat um newsworthy recently because of its use in Ukraine.” — ▶ 34:40

The speaker notes Verve Therapeutics' collaboration with Beam Therapeutics to utilize base editing for treating hypercholesterolemia. This approach, if successful in clinical trials, could initially help high-risk patients and potentially be expanded to a wider population, addressing heart disease, which is the leading cause of death. This represents a significant long-term opportunity.

“a great example of this is the collaboration between verve therapeutics and beam therapeutics to use base editing to treat hypercholesterolemia by editing pcsk9” — ▶ 15:00

Verve Therapeutics is developing a one-and-done gene-editing medicine to permanently lower LDL cholesterol, addressing the leading cause of death worldwide. The company has shown promising preclinical data in monkeys for its VERVE-101 program targeting PCSK9, demonstrating significant and durable LDL reduction. They also have a pipeline of other gene-editing targets and are focused on making these therapies cost-effective and accessible to millions of patients.

“Our company is founded on the idea that we can develop a one and done gene editing medicine that would lower ldl cholesterol dramatically and do so for essentially a lifetime durably do so and as a way to treat treat heart attack.” — ▶ 3:50

The speaker highlights Beam Therapeutics' adenine base editor, which recently received FDA clearance for a clinical trial. They are collaborating with Verve Therapeutics to use base editing to treat hypercholesterolemia, initially targeting high-risk patients. If proven safe and efficacious, this technology could be expanded to a broader population, potentially making a significant dent in heart disease, the leading cause of death.

“the adenine based editor that's actually the base editor that recently uh a form of which recently received FDA clearance to begin a clinical trial uh led by beam therapeutics” — ▶ 10:00

Cathie Wood argues that Teledoc, despite being dismissed as a 'stay-at-home stock', is a real company with strong fundamentals. Its revenues have quadrupled since the pandemic, gross margins are in the high 60s, and it is becoming a backbone of the healthcare information system. She believes the market is misplacing its dismissal of the stock.

“Teledoc has about 2 billion 2 billion in sales its revenues have gone up four-fold uh since the beginning of the coronavirus and we don't think that its revenues are going to go down.” — ▶ 10:00

Cathie Wood expresses concern about GM, arguing that its stock gains from EV announcements are misplaced given that EVs are only 2-3% of sales. She suggests that if consumer preference shifts to electric vehicles, the remaining 97% of their gas-powered revenue base could become obsolete, leading to potential losses and credit issues in the auto sector.

“I look at the performance of stocks like GM and Ford uh they soared on those electric vehicle announcements think about that that's ridiculous it's only two percent of their sales and what if the other 98 or so forth are on their way out as the consumer preference shifts toward electric they have problems.” — ▶ 26:00

Elon Musk expresses support for Dogecoin, citing its irreverent community, memes, and the potential for an ironic and entertaining outcome where a joke cryptocurrency becomes a leading one. He owns Dogecoin personally and believes it has potential.

“the most ironic and entertaining outcome would be that the cryptocurrency that was started as a joke to make fun of cryptocurrencies ends up being the leading cryptocurrency that would be the most ironic outcome” — ▶ 31:00