Cathie Wood backs inclusion of Bitcoin in FHFA mortgage lending

Cathie Wood, renowned investor and visionary in the cryptocurrency world, highlights a significant shift in the U.S. mortgage industry.

According to her, the new regulation promoted by the Federal Housing Finance Agency (FHFA) is transforming a Bitcoin is a key tool for accessing mortgage loans.As reported by this outlet, this means that crypto investors can now use their digital assets as collateral to purchase a home, without having to sell their bitcoins or give up the growth potential of their investment.

In a post on X, Wood highlighted that this breakthrough represents a paradigm shift in the relationship between traditional finance and the digital economy. 

For years, Bitcoin had been viewed primarily as a store of value or a speculative investment. However, it is now beginning to be recognized as a legitimate asset that can support financial transactions as important as home ownership. 

For millions of people who have invested in the crypto universe, this regulation opens a door to real estate ownership, previously considered inaccessible or complicated due to the lack of recognition of their digital assets, said Wood.

Bitcoin: The New Key to Homes and Real Estate in the U.S.

As reported by this media, FHFA Director William J. Pulte announced that after an exhaustive study, and in line with President Donald Trump's vision of turning the United States into the cryptocurrency capital of the world, it was ordered to Fannie mae, the Federal National Mortgage Association, already Freddie mac, the Federal Home Loan Mortgage Corporation, to prepare their companies to have cryptocurrencies accounted for as mortgage assets. 

For years, cryptocurrency investors faced a significant challenge: even though they accumulated significant digital wealth, banks and lenders didn't consider it when evaluating mortgage applications. The traditional system relies on criteria such as declared income, employment history, and credit scores, leaving out many self-employed individuals, digital entrepreneurs, and those who have invested in Bitcoin and other crypto assets.

However, with this new FHFA directive, a new door opens. Fannie Mae and Freddie Mac will now begin to include crypto assets in their wealth analysis of applicants. thus recognizing Bitcoin and other digital assets as legitimate forms of wealthThis will allow a growing segment of the population, which previously faced barriers to accessing mortgages, to now rely on their digital assets to support their applications.

Ultimately, this decision represents a significant step toward integrating cryptocurrencies into the traditional financial system, marking a turning point in the way digital wealth is understood and utilized in the United States.

Cathie Wood envisions a revolution in the mortgage market with Bitcoin

Following Pulte's statements, Cathie Wood did not hesitate to point out the scope of the decision. Wood was clear in stating that the consequences of this disruptive and innovative measure are not yet fully understood. 

In his own words, "This measure could significantly boost both cryptocurrencies and the real estate sector... I don't think its consequences are fully understood.". 

He also indicated that the integration of Bitcoin into the mortgage system could trigger a series of structural changes, from the creation of new financial products to greater market inclusion and diversification.

Wood enthusiastically welcomed the recent move by the U.S. Federal Housing Finance Agency (FHA) to formally integrate cryptocurrencies, especially Bitcoin, into mortgage eligibility screening. According to Wood, this initiative is a revolutionary step that could transform both the real estate sector and the crypto market, allowing crypto investors to use their digital assets as part of their equity to access mortgage loans without having to liquidate their cryptocurrencies.

Bitcoin boosts new mortgages and challenges financial volatility

The news has generated considerable buzz in both the crypto ecosystem and the real estate sector. For many, it represents a historic opportunity: crypto investors will be able to leverage the value accumulated in their bitcoins to access mortgage loans, something unthinkable until recently. This could trigger a wave of new financial products, such as hybrid mortgages that combine fiat and crypto collateral, or even mortgage-backed securities with exposure to digital assets.

However, the move is not without challenges. The inherent volatility of cryptoassets, especially in the short term, could raise concerns among some experts and regulators. Still, cryptocurrency advocates, like Wood, argue that Bitcoin, unlike other cryptocurrencies, has demonstrated remarkable resilience and stability, especially following its institutional adoption and increased liquidity in global markets. Because of all this, it has established itself as a solid and reliable digital asset, even more so than gold. 

Thus, the ability to use Bitcoin as collateral to access a mortgage represents a milestone in the evolution of modern finance. 

For millions of crypto investors, a window of opportunity is opening that until now seemed unattainable: to convert their digital wealth into a home of their own, without giving up their position in the crypto market or being forced to liquidate their assets. To reflect the magnitude of this change, experts have said that we are witnessing the beginning of a new era, where the lines between the digital and financial worlds are blurring, and where inclusion and innovation become drivers of growth and well-being.