In a recent interview with CNBC, Ark Invest CEO Cathie Wood expressed optimism about the approval of a Spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), suggesting that the market signals are encouraging and approval could come as soon as January 10, 2024.
Wood highlighted a significant shift in the SEC’s perspective, noting an improved depth of knowledge and understanding of Bitcoin and the complexities of market dynamics. She also mentioned her collaboration with 21Shares on Ethereum and Bitcoin-focused futures ETF products, emphasizing the positive regulatory signs for approval.
Wood believes that the approval of the Spot Bitcoin ETF would act as a catalyst for increased institutional and investor participation in the cryptocurrency space. She expects the market to revitalize by providing additional diversification options once institutions are established.
Praising 21Shares as a significant player with approximately $2 billion in assets, Wood described it as the world’s largest pure ETP crypto provider. Looking ahead to 2024, she anticipates the positive trend observed in 2023, where Bitcoin achieved a noteworthy 50% gain despite challenges, including a regional banking crisis, to continue.
Wood contrasted cryptocurrencies with traditional banking systems, highlighting the absence of counterparty risk and the decentralized and transparent nature of cryptocurrencies. She underscored the level of transparency that allows investors to track token movements and on-chain activities, which is not seen in traditional financial systems.
Furthermore, Wood positioned Bitcoin as a versatile asset that serves as a hedge against both inflation and deflation. She envisions a future where Bitcoin is considered similarly to physical gold as an investment and expects its status as a store of value and a hedge against economic uncertainties to solidify over the next five years. Wood also suggested that Bitcoin could become a legal tender in emerging economies, referencing El Salvador’s supportive stance towards Bitcoin and other cryptocurrencies as legal payment methods, indicating a broader trend of cryptocurrencies playing an integral role in various countries’ financial systems. Wood’s optimistic outlook points to a potential turning point with the approval of the Spot Bitcoin ETF, which would pave the way for increased institutional participation and further legitimize Bitcoin as a significant financial asset.