In a recent interview with CNBC, Cathie Wood, CEO of Ark Invest, shared her optimistic views on the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
Encouraging Signs for Bitcoin Spot ETF Approval
Wood highlighted that there are encouraging signs pointing towards the approval of a Bitcoin spot ETF in January 2024. She noted the SEC’s improved depth of knowledge and understanding of the relevant issues, which contributes to the positive outlook for this development.
Stimulating Institutional Interest
Wood, who is collaborating with 21Shares on Ethereum and Bitcoin futures ETF products, emphasized the importance of a spot Bitcoin ETF in stimulating institutional interest in the crypto space. She believes that once institutions and investors establish a foothold in Bitcoin, they will seek ways to diversify their portfolios.
“We’re watching the plumbing, and the plumbing works,” Wood remarked, highlighting the significance of actively managing diversification strategies.
Wood commended 21Shares as the “largest pure-play ETP crypto provider in the world with roughly $2 billion in assets,” praising their role in the evolving crypto landscape.
Impact on Bitcoin’s Price
Regarding the impact of spot ETF approval on Bitcoin’s price, Wood acknowledged that there will be a short-term impact. However, she believes that institutional push into Bitcoin will have a quite significant impact on the leading cryptocurrency’s price in the long run.
“We’re watching the plumbing, and the plumbing works,” Wood remarked, highlighting the significance of actively managing diversification strategies.
Looking ahead to 2024, Wood predicts a continuation of the positive trend seen in 2023, during which Bitcoin achieved a remarkable 50% gain despite challenges such as a regional bank crisis. She emphasized the unique features of crypto tokens, including their lack of counterparty risk, decentralization, and transparency, allowing investors to track token movements and on-chain activities.
“Bitcoin serves as a hedge against both inflation and deflation,” Wood stated, foreseeing a future where Bitcoin will be treated as an investment comparable to physical gold.
Wood also suggested that Bitcoin could be adopted as legal tender in more emerging economies, citing El Salvador and Argentina’s support for Bitcoin and crypto assets.
