According to Cathie Wood of Ark Invest, Bitcoin’s long-term prospects are bright.
The CEO and chief investment officer of this popular active management company told CNBC this week that as cryptocurrencies soar to unprecedented new highs, their catalysts are adding up.
Wood told CNBC’s “ETF Edge” in a comprehensive interview on Wednesday: “I think the possibility of ETFs has risen.”
Wood said that with the appointment of Gary Gensler, a long-time financier who taught digital currency courses at the Massachusetts Institute of Technology, as the head of the Securities and Exchange Commission, during Biden’s administration, Regulators may gradually become interested in cryptocurrencies.
For Bitcoin ETFs in the United States, “I think someone really understands the space now, and the possibilities seem to have increased.”
Purpose Investment was approved this week for Canada’s first physically-backed Bitcoin ETF. The fund began trading on Thursday.
Wood said that now American companies, including Ark Investment’s favorite Tesla, have added Bitcoin to their balance sheets, and their profit potential has doubled.
She said: “We expect the interest of institutions will definitely increase this year, but it does rise, but this approach surprised us.” “I don’t think we have ever thought of broadly replacing Bitcoin on the company’s balance sheet. Cash, so we found it interesting.”
Tesla disclosed its $1.5 billion bet on Bitcoin through SEC filings earlier this month. Several other major players in the US market, including BlackRock, MasterCard and Square, have also announced their entry into this field.
Wood said: “If all companies in the United States put 10% of their cash in Bitcoin, this alone will increase the price of Bitcoin by $200,000.” “Now, we obviously don’t think this will happen anytime soon. We are doing this. Talking about [a] The market value of 900 billion US dollars. “
According to data from the digital currency news website Coindesk, the market value of Bitcoin exceeded $1 trillion last Friday.
Wood said on Wednesday: “It must mature a bit before it can be widely adopted, but we are assured that companies like Square and Tesla have chosen to distribute.”
Som Seif’s, Founder and CEO of Watch Purpose Investments “ETF Edge” Interview about the Bitcoin ETF he just launched Here.