Ark Invest drops PayPal Holdings for crypto-enabled cash app by CoinQuora

© PayPal PR Ark Invest drops PayPal Holdings for crypto-enabled cash app

  • Ark Invest has sold all of its PayPal (NASDAQ:) holdings and is taking a long-term bullish stance on the Cash App payment system.
  • Ark Invest founder Cathie Wood explained the reasoning behind the company’s decision to dump its PayPal holdings at the recent 2022 conference in Miami.
  • Wood continued that her company’s strong belief in Cash App stems from what she perceives to be organic user growth.

Cathie Wood, founder of cryptocurrency investment firm Ark Invest, ditched all of the company’s PayPal holdings and expressed longer-term confidence in the growth of Cash App’s payment system, which is integrated to the Bitcoin Lightning network.

Wood explained the reason for the company’s decision to dump its PayPal holdings at the recent Bitcoin 2022 conference in Miami, which ended on April 9.

Wood said in an interview with CNBC on April 8 that the decision to drop PayPal for Cash App was due to the latter’s holistic approach to integration with digital assets. She said that even though Venmo has also started hosting Bitcoin (BTC), it is still following after Cash App.

Wood said: “We tend to bet on who we think will be the winners…As we consolidated our portfolios during a risky period, we chose Block over PayPal.”

Wood continued that her company’s strong belief in Cash App stems from what she perceives to be organic user growth. This is different from Cash App competitor Venmo, which takes “more of a top-down approach”.

In general, Wood believes that the growth of the cryptocurrency market has been driven primarily by retail investors thus far, stating, “I don’t think most institutional investors are positioned the way they will eventually be. Retail has really led the charge here.

Following Ark Invest’s take on a bullish stance on Cash App, its Bitcoin Product Manager, Miles Suter, announced on April 7 that US users would be able to automatically invest a portion of their paychecks in Bitcoin.

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