ARK Invest has liquidated its position in PayPal shares. Kathy Wood, CEO of the asset manager, has explained the move in an interview with CNBC as more confidence in the prospects of Cash App from competitor Block (formerly Square).
PayPal owns mobile payment service Venmo, which in April 2021 added the ability to buy and sell cryptocurrencies. However, Wood believes that the leader is Cash App thanks to the support of the Lightning Network. Unlike PayPal, Block has approached the integration of wallets with digital assets more comprehensively, the CEO of ARK Invest has explained:
“We tend to bet on who we think will be the winner.”
The Cash App user base is growing more organically, while Venmo treats the development of support for cryptocurrencies “on a leftover basis,” Wood has added.