Cryptocurrency was initially created to sidestep old institutions – and banks may finally be feeling themselves get disrupted, Ark Invest CEO Cathie Wood said.

Wood, who is known for her high-risk, high-reward strategy, told CNBC’s Crypto World Thursday that investors showing interest in DeFi (or decentralized finance) applications may threaten traditional banks. Wood said there’s been “share shifting” in DeFi loans.

Wood stated that banks have a problem at the Bitcoin 2022 conference. They’re losing their talent to crypto so they have to increase wages to attract talent and are losing business to DeFi. Lending and saving – a lot of it is taking place in DeFi right now.”

The umbrella term “decentralized finance” refers to the many financial products and services, which are peer-to–peer and built on blockchains. It eliminates the need for traditional institutions, who have traditionally provided these services.

Wood also stated that the political establishments are responding in positive ways to crypto.

She stated that “What’s happening today is 180° different from what was last year.”

She pointed out the change in stance by U.S. Treasury Secret Janet YellenThe previous concern expressed by Mr. X was about crypto. He is also averse the potential environmental issues and risks of illegal activity.

“I recall being asked that question at the time. I said basically she hadn’t study the technology or the tools of the new asset classes. Wood explained that she seems to have been training up.

Ark was the public’s first asset manager to get exposure to Bitcoin in September 2015. Wood stated that the firm sees bitcoin’s value increasing to $1,000,000 by 2030.