ARK Invest CEO Cathie Wood has outlined a promising future for Bitcoin following the potential approval of the Spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Cathie Wood Predicts a Bright Future for Bitcoin Post ETF Approval
Wood expressed optimism about the SEC's growing understanding of the crypto space and expects approval by January 10, 2024.
Wood, who is collaborating with 21Shares on two Ethereum-based futures ETF products, praised the company as “the largest pure ETP crypto provider in the world with approximately $2 billion in assets.”
He underlined the importance of a spot Bitcoin ETF, stating that interest would increase once institutions and other investors gain a foothold in the space. “They will be looking for ways to diversify, and we wanted to be ready to actively manage their diversification strategy,” he said.
Looking ahead, Wood predicts that 2024 will continue the trend set in 2023, when Bitcoin managed to post record gains of 50% despite a regional banking crisis.
Emphasizing the advantages of crypto tokens over the traditional banking system, Wood pointed out that they do not carry counterparty risk and their decentralized and transparent structure allows investors to follow token movements and unusual activities on the chain.
Wood also sees Bitcoin as a hedge against inflation and deflation. He predicts that within five years, Bitcoin will be treated like an investment in physical gold.
Moreover, he suggests that Bitcoin could even be used as legal tender in more emerging economies, following in the footsteps of El Salvador, which announced its support for Bitcoin and crypto assets.
*This is not investment advice.
he’s a she lol
Cathy Wood is a woman, please use her correct pronouns