Cathie Wood Loves Bitcoin – But She’s Also Loading Up on These 2 Fintech Stocks

It’s not a mystery why high-tech innovation investor Cathie Wood is such a big fan of Bitcoin. She’s all about up-and-coming disruptive technologies. And with its potential to keep making waves across the global financial scene, Wood still sees plenty of upside for the revolutionary digital currency.

Indeed, Wood is probably one of the biggest Bitcoin bulls you’ll come across on Wall Street. She’s of the view that Bitcoin could hit $1.5 million by 2030, which entails gains that would amount to more than a 10-bagger. Given it’s impossible to “value” the digital asset, I’d argue that any projections should be taken with a fine grain of salt.

Cathie Wood couldn’t be more bullish on Bitcoin.

Clearly, Wood is a big fan of Bitcoin’s continued ascent. But expecting a 10-bagger in five years, I think, is quite unrealistic. Does that mean Bitcoin can’t double up more times over in the coming three to five years? Of course not. It’s remarkable how many investors, institutions, and corporations have embraced the asset despite its high volatility and other shortcomings to more traditional stores of value such as gold.

Perhaps Bitcoin really is the “new gold” for an increasingly digitized future. And while the wind can stay at Bitcoin’s back, especially under a pro-crypto President Trump, investors in crypto should brace for corrections and plunges to hit unexpectedly. Indeed, holding Bitcoin isn’t for the faint of heart, especially since it trades at all hours (how do crypto investors get a good night’s sleep?).

That said, I do think it’s worth exposing your portfolio in small doses, perhaps indirectly through a crypto brokerage stock or a fintech ETF like Cathie Wood’s own Ark Fintech Innovation ETF (NYSEARCA:ARKF), which continues to be one of my favorite Ark funds amid fintech’s massive comeback in 2024.

Looking ahead, I think the ARKF and fintech scene have more room to run as many of the battered names look to continue on the ascendency after the brutal 2021-22 crash. Sure, financial technology remains disruptive, but with reset expectations, the following ARKF holdings, I believe, are worth checking in on while they gain in momentum.

Coinbase

Playing Bitcoin and the like via a crypto brokerage could be a wise move. Coinbase (NASDAQ:COIN) stock has been a choppy mover of late, recently retreating more than 31% after an explosive two-year run off its lows. Despite the plunge, shares of COIN are still up north of 600% from their 2022 lows. You’ll have to brave the choppiness, but I do think for those with strong stomachs (3.62 beta, which makes COIN one of the choppiest movers out there), there are significant gains to be had, especially if Bitcoin’s next leg higher pulls COIN back to its prior highs.

At the time of writing, shares look cheap at 24.86 times trailing price-to-earnings (P/E). With two price target upgrades courtesy of Canaccord Genuity and Keefe, Bruyette & Woods, which hiked their price target to $305 and $400, respectively, I do think the ARKW’s second-largest (8.1% of the fund) holding is an interesting pick-up. 

Block

Block (NYSE:XYZ), which recently changed its ticker symbol from SQ—representing its former name Square—to XYZ. Indeed, it’s a rather perplexing ticker name change, but one that’s probably not all too surprising “Block head” and co-founder Jack Dorsey is still running the show. Of late, the stock has been trending lower, thanks in part to a disappointing quarter. I view the dip as a buying opportunity for investors who want a front-row seat to fintech’s continued rise.

Though Square and Cash App are the stars of the show, Bitcoin wallet firm Bitkey and Bitcoin-mining play Proto remain very intriguing firms that could level up the infrastructure surrounding Bitcoin. Secure wallets and advanced mining platforms could act as a shot in the arm for Bitcoin, as the crypto becomes easier to access for your average retail investor. Given Dorsey’s high hopes for Bitcoin and his firm’s focus on advancing it, I do view Block stock as a fantastic ARKF name to hold for the next decade. 

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