「Wood Sister」: Bitcoin is a key asset embodying three major changes, and its low correlation with gold will promote its attribute diversification

On February 10, Cathie Wood—often nicknamed “Wood Sister”—said in her latest podcast that Bitcoin isn’t the traditional “digital gold” in a literal sense, so its short-term performance doesn’t align with gold’s. Since 2019, the correlation coefficient between Bitcoin and gold returns has been just 0.14. That’s exactly Bitcoin’s value as a diversifying asset: low-correlation assets boost a portfolio’s risk-adjusted returns. She noted the key to successful diversification is adding new assets with low correlation, and Bitcoin fits that bill. Moreover, Wood defines Bitcoin as an asset embodying “three revolutions in one”: - A global digital sovereign monetary system; - A new layer for the internet stack supporting native currency, intelligent agents, and commerce; - A new asset class (with Bitcoin as the most secure, largest network representing crypto assets). She describes Bitcoin as being in the early stages of the innovation S-curve. Like all historically disruptive technologies, it’s volatile and sees frequent pullbacks—but that’s a normal part of its growth path, not a sign of its demise.