Ark investment management CEO Cathie Wood argued on Wednesday why investors are considering crypto assets in response to the economic crisis.

What happened: In a Twitter thread, she noted how crypto assets during the Silicon Valley Bank meltdown, the government indicated that stock and bondholders were in danger of being “wiped out”.

Wood explained how companies and individuals are now taking steps to hedge their fiat assets with crypto assets, leading to risk reduction and higher returns by shifting from “low-yielding bank deposits to higher-yielding money market funds.”

“As a result, regional banks appear to be moving from a liquidity crisis to a slower solvency crisis now that they can borrow at will from a government facility at ~4.5%,” Wood tweeted.

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according to her Bitcoin BTC/USD and other crypto assets valued during this banking crisis because they “have no central points of failure: they are decentralized, transparent and auditable.”

Price promotion: At the time of writing, BTC is trading at $27,421, down 2.90% over the past 24 hours. according to Benzinga Pro.

Continue reading: Bitcoin, Ethereum, Dogecoin Slip After Fed Rate Hike: Analyst Sees Apex Crypto “Consolidation Before Continuation” At This Key Level

(Illustration: Gonzalo Lanzilotta via Benzinga)