Cathie Wood. Brendan McDermid/Reuters
Cathie Wood of Ark Invest purchased 830,000 Twitter shares for $55 million Thursday.
After the social media company announced that it would allow users to send and receive tips in bitcoin, she bought stock.
Woods believes that digital asset regulation issues can be managed through Twitter betting.
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Ark Invest purchased 830,000 Twitter shares for $55 million on Thursday, after the social-agencies introduced a feature that allows users to send and get tips in bitcoin.
According to a trade update, the flagship fund ARK Innovation ETF bought 661,141 shares of the company. The ARK Next Generation Internet ETF acquired another 168,766 shares.
Cathie Wood's tweet bet shows her belief that digital assets can be managed and that there will not be any regulatory issues. As cryptocurrencies and exchanges become more popular, rule-enforcing agencies all over the globe have increased their scrutiny.
The US Securities and Exchange Commission chairman Gary Gensler recently stated that cryptocurrencies may not be viable as a long-term payment method. Chairman of the SEC, Gary Gensler, has called for more investor protection in the industry. This is fueling fears that Wall Street's top regulator may be working overtime to create rules that could limit innovation in the volatile cryptocurrency market.
Wood's investing strategy revolves around disruption innovation in technology. He recently predicted that bitcoin could reach $500,000 within five years. According to CoinDesk data, the digital asset traded at $42,563 on Friday. That's 3.5% less than it was the previous day.
Twitter has not only announced bitcoin tipping as a new feature. Twitter plans to let its users connect their crypto wallets in order to facilitate bitcoin tips and authenticate non-fungible tokens that are displayed on profiles. Twitter said that NFTs are still in exploration, although there aren't any concrete plans.
Twitter also announced Super Follows, a new service that allows creators to charge a monthly fee for premium content.
Twitter traded at $66.72 per share Friday. This is a 23% increase so far this year.
Read More: Erik Gordon, a veteran professor, explains why he doesn’t anticipate a stock market crash. He calls Cathie Wood an dot-com throwback for her grand claims and warns against investing in meme stocks
