Cathie Wood’s Ark Invest dumps PayPal favoring Bitcoin-friendly Cash App
Crypto investment company Ark Invest founder, Cathie Wood, has dumped all of the firm’s holdings of PayPal and showed greater confidence in the long-term growth of the Cash App payment system which uses the Bitcoin Lightning Network.
Wood explained her firm’s move at the Miami Bitcoin 2022 conference which wrapped up on April 9.
The Lightning Network (LN) is a layer-2 solution for Bitcoin meant to facilitate faster and cheaper transactions. Financial technology company PayPal operates the payment app Venmo as a direct competitor with Block’s (formerly Square) Cash App.
“@ARKInvest has sold, completely got out of Paypal, whose Venmo is a big competitor to Cash App.(Cash App has) much more conviction - especially when it comes to bitcoin.” pic.twitter.com/mUGkdWGMFX
Wood said in an interview with CNBC on April 8 that she made the decision to drop PayPal for Cash App due to its more comprehensive approach toward digital asset wallet integration. She said that although Venmo has begun to accommodate Bitcoin (BTC), “it’s more of a follower of Cash App.”
Wood continued that her firm’s conviction in Cash App stems from what she perceives to be the organically-driven growth in users “as opposed to more of a top-down approach” from Venmo.
In general, Wood believes retail investors have driven the crypto market up to this point as she stated:
Venmo currently boasts 70 million users and $850 million in profit compared to Cash App’s 44 million and $2.03 billion in profit in 2021 according to data from app tracker Business of Apps. The stark contrast in their ability to net profits could be another motivating factor for Ark’s assessment of the two brands.
Related: Bitcoin plumbs April lows as US dollar strength hits highest since May 2020
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