{"id":10927,"date":"2023-03-16T08:57:16","date_gmt":"2023-03-16T08:57:16","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=10927"},"modified":"2023-03-16T08:57:17","modified_gmt":"2023-03-16T08:57:17","slug":"crypto-acted-as-safe-haven-amid-svb-and-signature-bank-run-cathie-wood","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10927","title":{"rendered":"Crypto acted as safe haven amid SVB and Signature bank run: Cathie Wood"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Amid all the chaos around multiple bank runs in the United States, Cathie Wood, CEO of asset management firm Ark Invest, said cryptocurrencies acted as safe haven amid the ongoing banking crisis in the US. She blamed the recent downfall of the likes of Silicon Valley Bank (SVB), Signature and others on the Fed\u2019s policy failure.\u00a0<\/p>\n<p>Cryptocurrency prices shot up in double digits, with Bitcoin (BTC) and Ether (ETH)\u00a0touching new multi-month highs amid the US banking crisis.<\/p>\n<p>In a Tweet thread on March 16, Wood criticized the Federal Reserve\u2019s inability to avert bank runs despite all the signs being there. She said she was \u201cbaffled that banks and regulators could not convince the Fed that disaster loomed.\u201d She argued that the Fed policy was the primary culprit for the ongoing banking crisis since there was a venture capital funding drought. <\/p>\n<p lang=\"en\" dir=\"ltr\">Crypto did not force SVB and Signature into bankruptcy. In my view, Fed policy was the primary culprit. Because of a VC funding drought and higher yields on money market funds, deposits left the US banking system.<\/p>\n<p>\u2014 Cathie Wood (@CathieDWood) March 16, 2023<\/p>\n<p>Pointing towards the asset\/liability mismatch, which, even normal in most circumstances for banks, was untenable in the current scenario as deposits left the banking system for the first time since the 1930s. Securities earnings for banks were only 1-2% against deposits paying 3-5%, which eventually became untenable as deposits started leaving the system. Like SVB, some banks were forced to sell HTM securities, recognizing losses that depleted their equity accounts.<\/p>\n<p>She also reminded everyone that the ongoing crisis wasn\u2019t forced by the cryptocurrency as the ecosystem has been under heavy scrutiny since FTX&#8217;s downfall leading to a severe regulatory crackdown. Wood said that regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking.<\/p>\n<p lang=\"en\" dir=\"ltr\">If you are correct, Congressman, then the FDIC and others will prevent the US from participating in the most important phase of the internet revolution. Like you, I believe regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking. https:\/\/t.co\/UDh3bwB2pB<\/p>\n<p>\u2014 Cathie Wood (@CathieDWood) March 16, 2023<\/p>\n<p>Wood has long been a known crypto proponent, often reflected in her company\u2019s investment in emerging markets, especially crypto. She noted that the current banking crisis would not have been possible in the decentralized, transparent, auditable, and over-collateralized crypto asset ecosystem.<\/p>\n<p><strong><em>Related:\u00a0US credit crunch means it\u2019s time to buy gold and Bitcoin: Novogratz<\/em><\/strong><\/p>\n<p>Wood projected crypto as a solution to the central points of failure, the opacity, and the regulatory mistakes in the traditional financial system. Made the scapegoat for policy mistakes, crypto will move offshore, depriving the US of one of the most important innovations in history<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/crypto-acted-as-safe-haven-amid-svb-and-signature-bank-run-cathie-wood\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid all the chaos around multiple bank runs in the United States, Cathie Wood, CEO of asset management firm Ark Invest, said cryptocurrencies acted as safe haven amid the ongoing banking crisis in the US. She blamed the recent downfall of the likes of Silicon Valley Bank (SVB), Signature and others on the Fed\u2019s policy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10927"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10927\/revisions"}],"predecessor-version":[{"id":10929,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10927\/revisions\/10929"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10928"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}