Cathie Wood, a cryptocurrency bull, asserts that Ethereum is more undervalued than Bitcoin

The Bitcoin vs Ethereum argument has raged for years and continues to increase in strength as the market expands. Pitting the two most popular cryptocurrencies against one another has been one of the market’s favourite activities. However, not everyone believes they are in competition.

Cathie Wood, CEO of ARK Invest, is well-known in the crypto community for her stance on Bitcoin, but Ethereum has been mostly ignored. Wood is well known in the sector for her forecast of bitcoin reaching $500,000, which she has maintained at different intervals.

The CEO has often said that she believes bitcoin is greatly undervalued and will need significant growth in the future years. Wood has noted, however, that ethereum, the leading cryptocurrency, is much more discounted than bitcoin.

Ethereum Is Continued to Be Undervalued

Wood spoke on CNBC’s Squawk Box to discuss the cryptocurrency industry. The CEO said on the broadcast that ethereum was still significantly undervalued. She illustrated this point with bitcoin, the market’s biggest cryptocurrency, which she feels is still significantly undervalued. Wood highlighted that although bitcoin is significantly discounted, ethereum is still significantly undervalued in comparison to it.

One of the primary motivations for investing in ethereum has been the digital asset’s functionality. Despite being just a year old, decentralised finance (DeFi) has achieved great growth, with ethereum hosting the bulk of DeFi activity. Wood emphasised that DeFi was important in the digital asset’s success.

“Because it serves as the venue, or protocol, for DeFi and NFTs, we believe it is even more undervalued than Bitcoin, simply because new worlds are sprouting up on top of it.”

According to the CEO, ethereum is still in its infancy and has a long way to go, while bitcoin has already proven itself as a currency. She continued by stating that institutions would invest more in DeFi and NFTs, which will “accelerate” their rise.

Still Optimistic About Bitcoin

Wood made a point of reiterating her opposition to bitcoin. The CEO remarked on institutional investors’ interest in the digital asset. Bitcoin has become unavoidable, and Wood emphasised that institutions must investigate it. “Institutional managers must consider emerging asset classes with little correlation,” the CEO said. “In terms of asset allocation, it is the Holy Grail.”

Bitcoin has undoubtedly had a prosperous decade of life. Cathie Wood, on the other hand, anticipates even more growth for the asset. Last month, the CEO said that with more institutions investing in bitcoin, the price may reach $500,000 in the next five years.

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