In a recent conversation with CNBC, Cathie Wood, the CEO of Ark Invest, shared her positive outlook on the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
Wood expressed confidence in the likelihood of the SEC approving a Bitcoin spot ETF in January 2024, citing optimistic indicators. She pointed out the SEC’s enhanced understanding and depth of knowledge regarding pertinent issues related to Bitcoin.
While collaborating with 21Shares on Ethereum and Bitcoin futures ETF offerings, Wood underscored the significance of a spot Bitcoin ETF in fueling institutional interest in the cryptocurrency market.
Bitcoin ETF Approval Would Bring in More Institutions
According to Wood, once institutions and investors establish their presence, they will actively seek ways to diversify their portfolios. Wood applauded 21Shares as the “largest pure-play ETP crypto provider globally, boasting approximately $2 billion in assets,” acknowledging their pivotal role in the evolving cryptocurrency landscape.
Discussing the potential approval of a spot ETF and its impact on Bitcoin’s price, Wood acknowledged a short-term effect. However, she emphasized that the institutional influx into Bitcoin would wield a substantial influence on the cryptocurrency’s value.
Wood stated, “We’re monitoring the infrastructure, and it’s functioning well,” underscoring the importance of proactively managing diversification strategies.
Looking ahead to 2024, Wood anticipates the continuation of the positive momentum witnessed in 2023, during which Bitcoin recorded an impressive 50% gain despite challenges like a regional bank crisis. She highlighted the distinctive attributes of crypto tokens, underscoring their lack of counterparty risk, decentralization, and transparency, which enables investors to monitor token movements and on-chain activities.
Wood asserted that Bitcoin functions as a hedge against both inflation and deflation, envisioning a future where Bitcoin will be regarded as an investment akin to physical gold. Furthermore, she suggested the possibility of Bitcoin gaining acceptance as legal tender in more emerging economies, citing the support for Bitcoin and crypto assets in countries like El Salvador and Argentina.
