Cathie Wood, the CEO of ARK Investment Management, expressed her belief in a recent interview with Brazilian financial markets information firm, InfoMoney, that Bitcoin (BTC) has the potential to become nearly as valuable as gold in the near future.
As good as gold?
“Gold represents a trillion-dollar asset in the global market, and we firmly believe that Bitcoin is poised to capture a substantial portion of that value,” Wood remarked.
In the latest data, Bitcoin Exchange-Traded Funds (ETFs) have now surpassed the value of Silver ETFs, securing the second position in terms of commodity investments actively traded in the United States.
Currently, Bitcoin ETFs have accumulated assets under management (AUM) exceeding $26 million, while Silver ETFs lag behind with AUM totaling just $11 million. Nevertheless, Gold ETFs still maintain a significant lead, combining for a total AUM of $95 million, surpassing both Bitcoin and Silver ETFs combined.
Bolstering their BTC
Wood’s remarks come approximately a week after the SEC greenlit several spot Bitcoin ETF applications, including the Ark 21 Shares Bitcoin ETF (ARKB). On Tuesday, the ARK Next Generation Internet ETF (ARKW) made a significant move by acquiring $15.9 million worth of ARKB shares, which can be seen as an effort to strengthen the spot Bitcoin ETF amidst intense competition.
Subsequently, on Wednesday, the company continued its strategy by selling $15 million worth of shares from their ProShares Bitcoin Strategy ETF (BITO) and using the proceeds to purchase an equivalent amount of ARKB shares. In the week leading up to the approval of spot Bitcoin ETFs, BITO shares surged by over 10%, amassing assets totaling more than $2 billion. However, following the launch of spot Bitcoin ETFs, futures-based funds have been witnessing outflows, with BITO’s assets dipping back to $1.7 billion.
As of Friday afternoon, ARKB was trading at $41.14, reflecting a 12% decline since its initial launch on January 11th.
Wood’s critique of Gensler
However, it is evident that not everyone shares the enthusiasm for the launch of spot Bitcoin ETFs. SEC Chair Gensler, in a statement issued shortly after the widespread ETF approval, clarified the SEC’s stance: “While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin. I’d note that the underlying assets in metals ETPs have consumer and industrial applications, whereas Bitcoin is primarily a speculative and volatile asset, frequently associated with illicit activities such as ransomware, money laundering, sanction evasion, and terrorist financing.”
Cathie Wood publicly expressed her disappointment in Gensler’s statement shortly after it was released during an interview with Bloomberg Radio, stating, “He just cast a negative light on the entire cryptocurrency sector. I was quite surprised by it.”
