In a recent CNBC interview, Cathie Wood, CEO of Ark Invest, expressed confidence in the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin exchange-traded fund (ETF). Wood’s optimism is fueled by the signs pointing to a potential approval in January 2024, citing the SEC’s enhanced understanding of the relevant issues and an improved depth of knowledge.
Wood, who is working with 21Shares on Ethereum and Bitcoin futures ETF products, emphasized that the approval of a spot Bitcoin ETF would play a pivotal role in attracting institutional interest in the crypto space. She believes that institutional investors, once involved, will look for opportunities to diversify their portfolios, heralding a potential shift in the market.
Highlighting the impact of spot ETF approval on Bitcoin’s price, Wood anticipates a short-term effect followed by a more significant institutional push, ultimately impacting the cryptocurrency’s price. She underlined the importance of actively managing diversification strategies, pointing out that “the plumbing works” as institutional investors continue to show interest in crypto assets.
Looking ahead to 2024, Wood foresees a continuation of the positive trend observed in 2023, with Bitcoin achieving significant gains despite challenges. She emphasized the unique features of crypto tokens, including lack of counterparty risk, decentralization, and transparency, which allow investors to track token movements and on-chain activities.
Wood also asserted that Bitcoin serves as a hedge against both inflation and deflation, foreshadowing a future where Bitcoin will be treated as an investment comparable to physical gold. Furthermore, she suggested that Bitcoin could become legal tender in more emerging economies, pointing to the support for Bitcoin and crypto assets in countries like El Salvador and Argentina.
