3 reasons for her leadership

In the latest appearance on the Master Investor podcast hosted by Wilfred Frost, Cathie Wood, CEO of ARK Invest, reiterates that Bitcoin remains the leading asset in the crypto market.

The tone is peremptory: 

That said, for ARK the exposure to Ethereum remains, but the strategic axis focuses on the leadership of Bitcoin.

According to the data collected by our editorial team and the on-chain metrics updated as of September 28, 2025, there are over 19 million BTC in circulation, equivalent to approximately ≈90.5% of the maximum supply set by the protocol. Industry analysts note that the last halving, which occurred in April 2024, reduced the flow of new BTC and reinforced the supply dynamics outlined by the protocol. 

Bitcoin: the three reasons according to Cathie Wood

1) Programmed scarcity and supply discipline

The protocol limits the supply to 21 million BTC. In this context, the halving mechanism periodically reduces the new issuance, making the supply dynamics non-discretionary and more resistant to political pressures. For Wood, this verifiable scarcity remains the cornerstone of Bitcoin’s narrative as a digital asset similar to gold, with natively digital transfer properties, as highlighted in the recent analysis on Bitcoin and gold.

2) Security and transparency of layer-one

Bitcoin prioritizes a simple and robust design at the layer-one level to maximize security and verifiability. It should be noted that its network aims for stability rather than general-purpose functionality, delegating innovation to higher or lateral levels. According to Wood, this architecture reduces trade-offs and makes Bitcoin a reliable monetary infrastructure in the long term. Recent data confirms the achievement of a new all-time high for Bitcoin’s hashrate, indicating the growing security of the Bitcoin network.

3) Market leadership and institutional role

Bitcoin has maintained the top position for capitalization and recognizability for years. In parallel, the attention of institutional investors and the adoption of regulated instruments – such as spot Bitcoin ETFs, which are the subject of debate and implementation in various jurisdictions – have strengthened its perception as a benchmark monetary asset. According to Wood, this network advantage is difficult to erode, with BlackRock considering Bitcoin a hedge against global disorder.

Stablecoin and DeFi: the Operational Framework

Wood recognizes the key function of stablecoin (e.g., USDT, USDC) as digital means of exchange, supported by Tether Transparency and Circle Transparency primarily in short-term government securities. In this sense, their growth has expanded access to financial services and increased the transparency of on-chain operations.

In on-chain lending and market making, some protocols offer returns higher than those of traditional accounts, with fees that under certain conditions drop below 1%. That said, DeFi reduces intermediaries and maximizes the auditability of operations.

Bitcoin vs Ethereum: Wood’s Position and the Counterpart

According to Wood, Ethereum remains central for smart contracts and DeFi applications, even though the proliferation of layer-two solutions might introduce fragmentation and complexity. In this context, he considers it unlikely for Ethereum to surpass Bitcoin in the long term.

On the other hand, some observers highlight the growth of on-chain activity on Ethereum, the expansion of the L2 ecosystem, and the role of ETH as collateral and gas asset. Yet, the comparison between the two cryptocurrencies remains open and depends on the evolution of scalability, regulation, and adoption.

Key Data at a Glance

• Maximum Bitcoin Supply: 21 million (fixed protocol)
• Bitcoin in circulation: over 19 million (estimate updated as of September 28, 2025, ≈90.5% of the total supply)
• DeFi Fees: in some protocols can drop below 1%
• Focus Bitcoin: L1 security, emission predictability
• Focus Ethereum: smart contract, DeFi and scalability via L2

Implications for Users and Market

• Monetary reliability: the scarcity of Bitcoin reinforces the narrative of a digital store of value.
• On-chain operations: stablecoins and DeFi protocols expand access to credit and payments.
• Costs and transparency: fewer intermediations and greater auditability compared to traditional circuits.
• Risks: volatility, technical complexity, and reliance on regulation remain crucial variables.

Quotes and Comparison with Other Views

Wood summarizes: “Bitcoin is the cryptocurrency.” Indeed, her perspective diverges from that of some analysts who speculate on a possible flippening of Ethereum. ARK maintains exposure to both assets, although the center of gravity of its thesis remains on Bitcoin. 

Timeline and Context

The interview was broadcast in 2025. Overall, the debate reflects current trends: expansion of DeFi and stablecoin, growing institutional attention, and consolidation of Bitcoin as a limited supply digital asset.