Beijing’s Tech Crackdown Has Bitcoin Fan Cathie Wood Offload Chinese Positions

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Last Updated on 13 September 2021 by CryptoTips.eu

Jeroen Kok

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One of the biggest believers in the long-term future of Bitcoin is still ARK investment founder Cathie Wood. For those of you in the unknown, Cathie is the top stockpicker of 2020 and is attracting millions of dollars in fresh investment whenever she makes a move.

Her big bets for 2021 are Tesla, Bitcoin (mostly via Canadian crypto ETFs apparently), renewable energy and many other tech related stocks. In the beginning of the year, we even predicted an ARK-Tesla-Bitcoin connection as the price of all three was so related.

Advertentie.

Reconsider regulations

One thing Ms Wood surprised the market with is that in the past few weeks and months, ARK has apparently lowered its exposure to Chinese stocks and funds, certainly after the Beijing government cracked down hard on crypto and tech firms earlier in the year.

In an interview with all the major channels in the US, Ms Wood admitted:

We have not eliminated our positions, but we have reduced our positioning in China dramatically and we have swapped some of our holders, which became losers, into companies that we know are courting the government with common prosperity.

Then again, Ms Wood feels that China will realize at a certain point it has made a mistake in cracking down on tech and crypto. While Chinese bitcoin miners have moved to places like Texas, Chinese tech companies (like Tencent and Alibaba) themselves are unable to do so, and have had to change their tune vis-à-vis the government.

US investors have limited their exposure as well, but the ARK founder believes this tech and crypto crackdown is only temporarily. She added:

We think China will reconsider some of these regulations with time and we won’t give up on China because they are so focused on innovation and they are so inherently entrepreneurial.

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