Cathie Wood: Bitcoin, China stocks deserve 'valuation downgrade,' but opportunities remain in those sectors

Cindy Ord/Getty Images Entertainment Cathie Wood, founder and CEO of Ark Invest, said Wednesday that Bitcoin (BTC-USD) and Chinese stocks deserve a "valuation downgrade," in part because of stepped-up regulatory controls out of China. However, Wood told CNBC that opportunities persist within both those sectors, as China remains a growth market and Bitcoin could find itself in a better position once its mining operations diversify away from China. Wood's comments followed news earlier in the day that Ark had cut its holdings in Chinese firms. This included selling shares in JD.com (JD), HUYA Inc (HUYA) and Tencent Holdings (TCEHY). Detailing her reasoning behind the move, The Ark Invest founder referred to China's recent actions, like those that impacted shares of DiDi (DIDI) shortly after its IPO, as an "assault on the valuation" of those firms. However, Wood does not see this added scrutiny impacting all companies equally. She said she