Cathie Wood: SEC Knowledge Grows, Institutions as Key Contributors to Bitcoin Price
Ark Invest founder Cathie Wood accepted an interview with CNBC, where she expressed optimism about the approval of the ARK 21Shares ETF in January. She also mentioned that the SEC has concerns about the risks associated with physical redemptions. Additionally, Wood believes that Bitcoin will be recognized as legal tender by more countries and partially replace gold within five years.
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Cathie Wood: SEC’s “knowledge base” has improved
SEC concerned about risks of physical redemptions
Institutions are the biggest contributors to the price of Bitcoin
Bitcoin will be recognized as legal tender by more countries and partially replace gold within five years
Cathie Wood: SEC’s “knowledge base” has improved
When asked about the progress of the ARK 21Shares ETF, Cathie Wood stated that after multiple rejections and discussions, the SEC’s depth of knowledge and understanding of the issues has improved.
She believes that it is highly likely to be approved before January 10th next year and hopes that it will pass by then.
SEC concerned about risks of physical redemptions
Cathie Wood revealed that the Ark and 21Shares Bitcoin spot ETF, as reported by the media, will indeed be based on cash for creation and redemption. She said:
“A minority within the SEC is concerned that physical creation will force traditional banks to deal with cryptocurrencies. We are not sure if this will happen. It is indeed a technical issue, but I hope this issue has been resolved.”
(ETF Infographic|How does SEC’s preferred ETF cash mode differ from the physical Bitcoin ETF offered by BlackRock?)
Institutions are the biggest contributors to the price of Bitcoin
Consistent with Ark’s argument, if institutions allocate 0.1% of their assets to Bitcoin, it can have a significant impact on the price. Cathie Wood emphasized that institutions often consider regulatory and tax issues, which may have been the reason why they have not invested in Bitcoin before. If Ark’s idea is correct, the Bitcoin spot ETF will become the best way for institutions to access Bitcoin.
(Big Ideas 2023|Ark Investment: Bitcoin price will range between $2.5-14.8 million by 2030, depending on market conditions)
Bitcoin will be recognized as legal tender by more countries and partially replace gold within five years
Cathie Wood pointed out that Bitcoin will continue its performance next year. At the beginning of the year, Bitcoin achieved a 50% increase even in the midst of a banking crisis because it has no counterparty risk, is decentralized and transparent on the blockchain, allowing investors to track abnormal activities on the blockchain.
She emphasized that Ark’s predictions are always long-term, spanning over five years. They do believe that Bitcoin will replace physical gold for some people.
In addition, she believes that more countries, in addition to El Salvador and Argentina, will support Bitcoin:
“We are not surprised that more emerging countries are considering Bitcoin as legal tender. This will be a very big market.”
21Shares
Cathie Wood
GBTC
Ark
Bitcoin
Bitcoin spot ETF
Further reading:
Positive news from Ark? Bloomberg ETF analyst: 90% probability of Bitcoin spot ETF approval before January 10th
Wait a little longer for the Bitcoin spot ETF! SEC extends review time for Ark ETF, seeks public opinion.
