Cathie Wood, founder of crypto investment firm Ark Invest, has disposed of all PayPal holdings and expressed greater confidence in the long term growth of Cash App, which uses the Bitcoin Lightning Network.
Wood spoke at the Miami Bitcoin 2022 conference, which concluded on April 9.
Lightning Network (LN), a layer-2 solution to Bitcoin, facilitates faster and more affordable transactions. PayPal, a financial technology company, operates Venmo, a payment app that is directly competitive with Block’s (formerly Square), Cash App.
“@ARKInvest sold and completely got out Paypal, whose Venmo rival Cash App. (Cash App has) much more conviction – especially when it comes to bitcoin.” pic.twitter.com/mUGkdWGMFX
— Miles Suter (@milessuter) April 10, 2022
Wood stated in an interview on CNBC April 8 that she dropped PayPal for Cash App because of its comprehensive approach to digital asset wallet integration. Although Venmo now accepts Bitcoin (BTC), she said Venmo is still more of a follower than Cash App.
“We are more inclined to place our bets on who we believe will win… We chose Block over PayPal as we consolidated our portfolios in a risk-off period.”
Wood said that Cash App’s conviction stems from her firm’s belief in organically-driven user growth, rather than a more top-down Venmo approach.
Wood stated that retail investors are the ones who have driven the crypto market to this point.
“I don’t believe most institutional investors are positioned in the way they will be.” Retail is the real leader in this area.
According to data from app tracker Business of Apps, Venmo has 70 million users and makes $850 million per year. Cash App is 44 million and makes $2.03 billion annually. Ark could also be motivated by the stark differences in their net profits.
Related: Bitcoin plummets to April lows, as the US dollar strength reaches its highest level since May 2020
Ark Invest took a bullish stance against Cash App. Miles Suter, the company’s Bitcoin product lead, announced that American users will be able to invest a portion their direct deposits in Bitcoin.
Wood, a huge Bitcoin believer, repeated her prediction that BTC would reach $1 million by 2030 in an interview.