Crypto investment firm Ark Invest founder Cathie Wood has dumped all of its PayPal shares. Instead the firm has shown interest and confidence in PayPal’s competitor and BTC friendly CashApp.
The move comes after Cathie Wood explained her stance at the Miami Bitcoin 2022 conference.
PayPal is the operator and owner of Venmo, a payment app. CashApp on the other hand is owned by Jack Dorsey’s Block.
During a CNBC interview, Wood explained her move saying she believes that although Venmo has started accommodating Bitcoin transactions, PayPal is a follower of CashApp.
She believes Venmo has not taken any proactive steps to promote crypto and stated “We tend to put our bets with who we believe will be the winners… As we consolidated our portfolios during a risk-off period, we chose Block over PayPal.”
Wood also mentioned that she favors CashApp because it has a better approach to integrating crypto wallets.
She further stated that CashApp has had better organic growth as compared to the “more of a top-down approach” from Venmo.
Lastly, she stated that retail investors are influencing the growth of the crypto market and institutional investors are yet to enter the market in a manner “they ultimately will be”.
A factor that could have majorly influenced Ark Invest’s decision is the profit generation of both the companies. Venmo has 70 million users and turned over a profit of $850 million. CashApp on the other hand turned over a massive profit of $2.03 billion from a mere 44 million users.
Ark Invest has been an active player of the crypto industry. Ark Invest’s recent filing to the SEC for an ETF was rejected.
