Spot BTC ETF Approval Will Encourage More Institutions to Invest in Bitcoin: Cathie Wood
In a recent interview with CNBC, Cathie Wood, CEO of Ark Invest, expressed her optimism about the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Wood believes that the signs pointing towards Bitcoin spot ETF approval in January 2024 are very encouraging, attributing this to the SEC’s improved understanding and knowledge of relevant issues.
Wood, who is collaborating with 21Shares on Ethereum and Bitcoin futures ETF products, highlighted the significance of a spot Bitcoin ETF in stimulating institutional interest in the crypto industry. She believes that once institutions and investors gain a foothold in Bitcoin, they will seek ways to diversify their portfolios. Wood praised 21Shares as the largest pure-play ETP crypto provider in the world, with approximately $2 billion in assets, acknowledging their role in the evolving crypto landscape.
Wood also discussed the potential impact of spot ETF approval on Bitcoin’s price, stating that there will be a short-term impact. However, she believes that institutional investment in Bitcoin will have a significant and lasting effect on the leading cryptocurrency’s price. Wood reassured that the “plumbing” of the crypto market is working properly and emphasized the importance of actively managing diversification strategies.
Looking ahead to 2024, Wood predicted 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 highlighted the unique features of crypto tokens, including their lack of counterparty risk, decentralization, and transparency, which allows investors to track token movements and on-chain activities.
Wood also stated that Bitcoin serves as a hedge against both inflation and deflation, envisioning a future where Bitcoin will be considered as an investment comparable to physical gold. Additionally, she suggested that Bitcoin adoption as legal tender could expand to more emerging economies, citing El Salvador and Argentina’s support for Bitcoin and crypto assets.