Ship or Die 2025: Fireside Chat with Cathie Wood

In a groundbreaking fireside chat at Ship or Die 2025, Cathie Wood of ARK Invest shared her bullish outlook on Solana, insights on crypto ETFs, and details of ARK's new blockchain ventures. The discussion revealed Solana's growing dominance in the developer ecosystem and its potential to revolutionize consumer-focused blockchain applications.

Summary

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Cathie Wood, CEO of ARK Invest, participated in her first Solana event, sharing valuable insights on the cryptocurrency landscape. She highlighted Solana's resilience and growing popularity among developers, surpassing Ethereum in new developer activity. Wood emphasized Solana's appeal to consumers due to its lower costs and agility in updates.

The conversation touched on the success of Bitcoin ETFs and the potential for Solana ETFs, with Wood stressing the importance of allowing staking in these financial products. She also discussed ARK's new ventures, including an early-stage blockchain venture fund and plans for an actively managed broad-based crypto fund.

Wood's comments on Solana's potential in areas like social finance and tokenized stocks underscore the blockchain's growing importance in the financial ecosystem. She also highlighted the significance of on-chain analytics in driving alpha for actively managed crypto funds.

Key Points:

Solana's Growing Dominance

Cathie Wood emphasized Solana's impressive resilience and growth, particularly in attracting developers. She noted that in July 2024, the number of new developers building on Solana surpassed that of Ethereum, making it the highest in the crypto ecosystem. This shift signifies Solana's increasing importance in the blockchain space and its potential for future innovation.

Wood attributed Solana's success to its consumer-friendly approach, highlighting its lower costs and agility in implementing updates. These factors have made Solana particularly attractive for consumer-focused applications, setting it apart from Ethereum's more institutional focus.

Crypto ETFs and Staking

The discussion delved into the world of crypto ETFs, with Wood sharing insights on the success of Bitcoin ETFs and the potential for Solana ETFs. She emphasized the importance of allowing staking in these financial products, noting that the inability to stake Ether in US ETFs has likely contributed to their underwhelming performance compared to expectations.

Wood revealed that ARK gained early access to both Ether and Solana ETFs through 3IQ in Canada, which allows staking. This has resulted in attractive yields of 6-8% for Solana and 2-3% for Ether. She suggested that the success of future crypto ETFs, including potential Solana ETFs, could largely depend on whether US regulators allow staking.

ARK's New Blockchain Ventures

Wood announced two exciting new ventures from ARK Invest. The first is an early-stage blockchain venture fund to be launched in St. Petersburg, Florida, at ARK's innovation center. This fund will focus heavily on Solana due to its growing developer ecosystem, while also considering Ethereum and other blockchain projects.

Additionally, ARK is planning to launch the first actively managed, broad-based crypto fund. Wood highlighted the potential for significant alpha generation in this space, leveraging ARK's expertise in on-chain analytics. This move signifies ARK's commitment to expanding its presence in the cryptocurrency and blockchain sectors.

The Future of Blockchain and Traditional Finance

Wood shared her vision for the future of blockchain technology and its integration with traditional finance. She sees crypto ETFs as an important stepping stone for mainstream adoption, providing a convenient entry point for investors who find wallets and direct cryptocurrency ownership too complex.

However, Wood also emphasized the long-term importance of wallet-based ownership, particularly in developing countries. She cited Pakistan as an example, where 50 million people have cryptocurrency wallets compared to only 300,000 with traditional brokerage accounts. This disparity highlights the potential for blockchain technology to revolutionize financial inclusion on a global scale.

Facts + Figures

• Solana surpassed Ethereum in new developer activity in July 2024
• ARK Invest first bought GBTC in 2015 when Bitcoin was priced at $250
• Solana ETFs in Canada offer 6-8% yields through staking
• Ethereum ETFs in Canada offer 2-3% yields through staking
• 21Shares launched a Solana ETP in Europe in 2021
• Kraken announced plans to introduce tokens for individual stocks like NVIDIA and Tesla on the Solana protocol
• In Pakistan, 50 million people have cryptocurrency wallets compared to only 300,000 with brokerage accounts
• ARK Invest plans to launch an early-stage blockchain venture fund in St. Petersburg, Florida
• ARK is developing the first actively managed, broad-based crypto fund
• ARK already has exposure to Bitcoin, Solana, and Ethereum in its ARKW and ARKF ETFs

Top quotes

1. "Solana has been very interesting. It is what I would call anti-fragile."
2. "Follow the developers. And it is catering this network while Ethereum is much more institutional, I would say."
3. "At Arc, one of the things we look for in a new technology is falling costs and accelerating uptake. And that's certainly Solana."
4. "I think as more and more people understand the segmentation here, Bitcoin is ossified by design. You know, it is backed by the largest computer network in the world. Ether is more flexible, but more decentralized than Solana is."
5. "These protocols are going to take away the tax in the financial system, because in the early days of the internet, no developer understood that there were going to be any financial services or commerce or anything. So they didn't build the layer in. This is simply what's happening now."
6. "On chain analytics are quite powerful. So transparent. So I think we're getting ready to, as you said, deliver the alpha."

Questions Answered

What makes Solana stand out in the cryptocurrency ecosystem?

Solana stands out due to its rapid growth in developer activity, surpassing Ethereum in new developers as of July 2024. It's particularly appealing to consumers because of its lower costs and agility in implementing updates. Solana's focus on consumer-friendly applications and its resilience through market cycles have made it a strong contender in the blockchain space.

How successful have Bitcoin ETFs been, and what's the outlook for Solana ETFs?

Bitcoin ETFs have been incredibly successful, breaking records in terms of flows and assets. The outlook for Solana ETFs is positive, especially if regulators allow staking. Cathie Wood emphasized that the ability to stake within ETFs could be a crucial factor in their success, as demonstrated by the popularity of Solana and Ethereum ETFs in Canada that offer staking yields.

What new ventures is ARK Invest launching in the blockchain space?

ARK Invest is launching two significant ventures in the blockchain space. First, they're creating an early-stage blockchain venture fund based in St. Petersburg, Florida, with a strong focus on Solana. Second, ARK is developing what they hope will be the first actively managed, broad-based crypto fund, leveraging their expertise in on-chain analytics to generate alpha.

How does Cathie Wood view the future of blockchain technology in finance?

Cathie Wood sees blockchain technology as a crucial component of the future financial system. She describes it as an "internet financial system" that will reduce inefficiencies and costs in traditional finance. Wood believes that while ETFs serve as an important stepping stone for mainstream adoption, the ultimate goal is increased wallet-based ownership, especially in developing countries where blockchain can significantly improve financial inclusion.

What role does on-chain analytics play in ARK's crypto investment strategy?

On-chain analytics plays a crucial role in ARK's crypto investment strategy. Wood mentioned that ARK has an analyst specifically focused on on-chain analytics, which she believes are more powerful and transparent than traditional equity data. This focus on on-chain analytics is expected to be a key driver of alpha in ARK's planned actively managed crypto fund.