The launch of spot Bitcoin exchange-traded funds (ETFs) has sparked a "substitution" of gold for Bitcoin among investors, according to Cathie Wood, CEO of ARK Invest. In a recent video, Wood said this substitution is just beginning and will likely continue as spot Bitcoin ETFs provide a "less friction-filled way to access Bitcoin."

Similar to gold, Wood believes that Bitcoin will demonstrate its value as a “risk off asset” during periods when the banking system is unstable. She points to March 2023 when Bitcoin shot up 40% amid a "regional bank crisis" in the U.S. With recent weakness in regional banks, Wood believes this "flight to quality or safety" for Bitcoin is reasserting itself.

According to Wood, most Bitcoin holders are taking a long-term outlook. Despite a price correction after the ETF launch, she notes that 15 million of the 19.5 million Bitcoin in circulation haven't moved in 155 days, remaining in "strong hands."

Wood believes the spot Bitcoin ETF launch has made Bitcoin more accessible. Her firm, ARK Invest, launched its own ETF following the SEC's approval. The ARK 21Shares Bitcoin ETF held over $700 million in Bitcoin as of last week.

With growing Bitcoin exposure, ARK Invest has also been purchasing stock in the crypto exchange Coinbase. While trimming its position since June, the firm still holds over $800 million worth of COIN shares across its ETFs.